(Reuters) -Bristol-Myers Squibb Co and Eisai Co (OTC:ESALY) said on Thursday they had entered into an agreement worth up to $3.10 billion to jointly develop and market an experimental cancer drug.
Bristol-Myers would pay $650 million, including for research and development expenses to Eisai, which will also be eligible for up to $2.45 billion in milestone payments, the companies said.
They would jointly develop and market the drug, MORAb-202, in Asia, Europe, the United States and Canada.
Bristol-Myers in May entered into a $1.56 billion deal with Agenus (NASDAQ:AGEN) Inc to exclusively develop and market its experimental drug for immuno-oncology treatments, including non-small-cell lung cancer.
The drugmaker has been betting on sales of its Opdivo drug to treat such cancers, in a market currently dominated by Merck & Co's rival treatment, Keytruda.
Eisai's drug, MORAb-202, is being developed for the treatment of solid tumors, including ovarian, lung and breast cancers and is in the early stage of development.
Bristol-Myers will pay Eisai a royalty on sales outside of the collaboration territories, the companies said.