Bristol-Myers Partners With Halozyme; Gains Access To ENHANZE Technology

(RTTNews) - Bristol-Myers Squibb Company (BMY) and Halozyme Therapeutics, Inc. (HALO) announced a global collaboration and license agreement to develop subcutaneously administered Bristol-Myers Squibb immuno-oncology medicines using Halozyme's ENHANZE drug-delivery technology. Halozyme will receive an initial $105 million for access to the ENHANZE technology. The collaboration may extend to a maximum of 11 targets. Halozyme has the potential to earn milestone payments of up to $160 million for each of the nominated collaboration targets and additional milestone payments for combination products. Bristol-Myers Squibb will pay Halozyme royalties on sales of products using the ENHANZE technology developed under the collaboration.

Bristol-Myers Squibb expects the transaction to be dilutive to Non-GAAP earnings per share in 2017 and 2018 by approximately $0.01, and by approximately $0.05 in 2019.