Halozyme Therapeutics Inc.(NASDAQ: HALO) and Bristol-Myers Squibb Co. (NYSE: BMY) announced on Thursday a collaboration and license agreement to develop Bristol-Myers Squibb immuno-oncology medicines using Halozyme’s ENHANZE drug-delivery technology.
Under the terms of the deal, Halozyme will received $105 upfront for access to its ENHANZE technology. Bristol-Myers Squibb has designated multiple immuno-oncology targets including programmed death 1 (PD-1) and can have more targets within the next five years. The collaboration may reach to a maximum of 11 targets.
Halozyme can possibly generate milestone payments of up to $160 million for each of the nominated collaboration products. Bristol-Myers Squibb will also pay Halozyme royalties for sales of products that use the ENHANZE technology developed while under the deal agreements.
Halozyme’s ENHANZE technology is based on a proprietary recombinant human hyaluronidase enzyme (rHuPH20) that temporarily degrades hyaluronan, a cluster of natural sugars in the body. The technology helps other injected drugs or treatments spread within the bodily more effectively. ENHANZE helps patients receive less injections, but still receive the same effectiveness.
“Bristol-Myers Squibb has one of the industry’s most advanced and extensive immuno-oncology portfolios with a clear commitment to patient-centered innovation,” said Helen Torley, president and chief executive officer of Halozyme. “Through this collaboration we are excited to explore the potential for ENHANZE to expand the number of cancer patients who may receive their therapies as a rapidly administered subcutaneous injection.”
Shortly after announcing the collaboration, Halozyme raised its fiscal year guidance.
Halozyme is now estimating net revenue in the range of $245 million to $260 million, a $130 million increase from the prior projection of $115 million to $130 million. The company now expects positive cash flow of $50 million to $60 million instead of the previous loss of $75 million to $85 million. The company states that the guidance is subject to approval of the collaboration.