Bristol Myers Inks Licensing Agreement for IMA401 with Immatics

Bristol Myers (BMY) has entered into a license, development, and commercialization agreement with clinical-stage biopharmaceutical company Immatics NV for TCR Bispecific candidate IMA401. BMY shares rose 0.78% to close at $59.51 on December 14.

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Bristol Myers is a pharmaceutical company that designs, develops, manufactures, licenses, and sells biopharmaceutical products.

Immatics Collaboration

Immatics will receive an upfront payment of $150 million as part of the licensing and commercialization agreement with Bristol Myers. It is also entitled to $770 million in development regulatory and commercial milestone payments and double-digit royalty payments on net sales of IMA401.

IMA401 is the most advanced Immatics product candidate under the TCR Bispecifics pipeline dubbed TCER® (T Cell Engaging Receptors). The product candidate has already shown anti-tumor activity with complete remission. (See Top Smart Score Stocks on TipRanks)

According to Bristol Myers Senior Vice President Teri Foy, TCER is an important modality for solid tumors. The company plans to advance IMA401 development as an innovative medicine for addressing serious diseases.

Bristol Myers’ latest deal builds on its strategic collaboration between Immatics and its wholly-owned subsidiary Celgene Corporation. Consequently, the collaboration is expected to complement its ongoing cell therapy activities.

Stock Rating

Last week, Wells Fargo analyst Mohit Bansal reiterated a Hold rating on Bristol Myers with a $58 price target, implying 2.54% downside potential to current levels. According to the analyst, the company faces challenges as a result of continuous patent losses. Additionally, the company’s pipeline might not be sufficient to counter the size of its patent losses by 2030.

Consensus among analysts is a Moderate Buy based on 5 Buys and 5 Holds. The average Bristol Myers price target of $68.88 implies 15.75% upside potential to current levels.