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BMS, Celldex to study nivolumab, CDX-1127

May 15, 2014 1:12 AM UTC

Celldex Therapeutics Inc. (NASDAQ:CLDX) jumped $3.34 (27%) to $15.74 on Wednesday after announcing an exclusive deal with Bristol-Myers Squibb Co. (NYSE:BMY) to evaluate combinations of anti- PD-1 receptor ( PDCD1; PD-1; CD279) antagonist antibodies with anti- CD27 agonist antibodies. Under the deal, Celldex will run a Ph I/II trial of BMS's anti-PD-1 mAb nivolumab with Celldex's anti-CD27 mAb varlilumab ( CDX-1127) in up to 200 patients with multiple tumor types. The trial is slated to begin in 4Q14. BMS will pay Celldex $5 million and the partners will share development costs. BMS will have right of first negotiation should Celldex choose to out-license varlilumab.

Celldex and BMS's Medarex Inc. subsidiary also amended an existing agreement for Celldex's CD27 program to waive undisclosed clinical and commercialization milestone payments and reduce future royalty rates to Medarex to the low-single digits from the low- to mid-single digits. Medarex spun out Celldex in 2003. BMS gained North American rights to nivolumab through its 2009 acquisition of Medarex, which partnered with Ono Pharmaceutical Co. Ltd. (Tokyo:4528) to develop the compound in 2005. ...