Avidity Biosciences soared 35% in pre-market trading after announcing a global licensing and research collaboration with Bristol-Myers Squibb Co (NYSE:BMY).
The pact is focused on the discovery, development and commercialization of multiple cardiovascular targets with potential cumulative payments of up to $2.3 billion.
Under the terms of the pact, Avidity will receive $100 million upfront, which includes a $60 million cash payment as well as the purchase of approximately $40 million of Avidity common stock at a purchase price of $7.88 per share.
Avidity is also eligible to receive up to approximately $1.35 billion in research and development milestone payments, up to approximately $825 million in commercial milestone payments, and tiered royalties up to low double-digits on net sales.
Bristol Myers Squibb will fund all future clinical development, regulatory and commercialization activities coming from this collaboration.
"This strategic collaboration solidifies our commitment in cardiology as we continue to advance our own research and development programs in cardiac indications," said Sarah Boyce, president and chief executive officer at Avidity.