Bristol Myers Bets Billions on Chinese-Discovered Antibody for Cancer

A groundbreaking multi-billion-dollar licensing deal between Germany’s BioNTech SE and U.S. pharmaceutical giant Bristol Myers Squibb (BMS) for a novel cancer therapy is drawing attention to the drug’s origins in China, where it was initially developed and valued much lower. The collaboration centers on BNT327 (PM8002), a bispecific antibody that targets both the PD-(L)1 and VEGF pathways, which are critical in cancer immunotherapy. Under this agreement, BMS will pay BioNTech $1.5 billion upfront, $2 billion in unconditional anniversary payments through 2028, and potentially up to $7.6 billion more in development, regulatory, and sales milestones. Costs, profits, and losses from the program will be shared equally by the companies[para. 1][para. 2].

BNT327’s Chinese origins can be traced to Biotheus Inc., a Zhuhai-based biotech founded in 2018. In November 2023, BioNTech secured global (excluding Greater China) development rights from Biotheus for $55 million upfront, with milestones exceeding $1 billion and tiered royalties. Less than a year later, BioNTech moved to acquire all of Biotheus’s share capital for $800 million upfront and up to $150 million in additional milestone payments[para. 3]. The sharp increase in valuation — from BioNTech's $55 million to BMS’s $1.5 billion upfront for the same drug — highlights how drugs developed in China can rapidly gain global recognition and value as supporting clinical evidence grows[para. 4].

BNT327 aims to improve upon monotherapies like Merck’s Keytruda (PD-1 inhibitor) and Roche’s Avastin (VEGF inhibitor) by combining both targets within a single molecule, offering the potential for enhanced efficacy and safety compared to existing treatments[para. 5]. The excitement around PD-1/VEGF bispecific antibodies intensified after Akeso Biopharma’s Ivonescimab outperformed Keytruda in a head-to-head study presented at the World Lung Cancer Conference in September, prompting a surge in acquisitions of similar Chinese-developed drugs by multinational pharmaceutical companies[para. 6].

Since its U.S. approval in 2014, Keytruda has become the world's top-selling drug with $25 billion in 2023 sales and an expected $29.5 billion in 2024, holding a dominant 56% share of the $52.5 billion global PD-(L)1 market, while BMS’s Opdivo has a 19% share[para. 7]. PD-1/VEGF bispecifics are viewed as the next frontier of cancer immunotherapy, offering the theoretical advantage of both restoring T-cell function and undermining tumor blood supply[para. 8].

For BMS, securing BNT327 is critical as Opdivo faces imminent U.S. patent expiry and competition from biosimilars. BNT327 has over 20 clinical trial programs ongoing or planned, including Phase III trials for small cell lung cancer and triple-negative breast cancer and Phase II/III trials for non-small cell lung cancer[para. 9].

Experts suggest Chinese biotech firms commonly accept lower early-stage licensing payments due to needs for funding in a challenging domestic reimbursement environment and limited venture capital, resulting in weaker bargaining positions internationally[para. 10]. China’s strength in PD-1/VEGF development has led to other major deals, such as Merck’s $588 million upfront payment for LaNova Medicines’ LM-299, and Pfizer’s $1.25 billion upfront acquisition of global rights to 3SBio’s SSGJ-707[para. 11]. Additional notable Chinese candidates in this class are advancing through clinical trials, while experts recommend rapid development for companies hoping to outpace competitors in this crowded and quickly evolving field[para. 12][para. 13].