CytomX Therapeutics Inc (NASDAQ:CTMX) saw its shares shoot almost 25% higher in early New York trading after the biotech firm said it would receive a US$200mln upfront payment from drugs giant Bristol-Myers Squibb Co. (NYSE:BMY).
The payment is part of the expansion of a collaboration pact to discover cancer treatments using CytomX's Probody platform.
CytomX will also be eligible to receive up to US$448mln in milestone payments, as well as royalty payments, if development, regulatory and sales targets are met.
Bristol-Myers’ head of discovery, Carl Decicco, said: “CytomX's Probody platform has enhanced our discovery research as we seek to direct the therapeutic effects of immunotherapy in a more targeted approach against tumor.”
CytomX's shares, which have gained 32% over the past three months, were up 23.7% to US$18.78 in early morning trade.