Eisai, Bristol Myers Squibb terminates collaboration on cancer drug

JAPAN— Eisai has announced the cancellation of its collaboration with Bristol Myers Squibb for the co-development and co-commercialization of farletuzumab ecteribulin (FZEC), a dual-acting drug designed to treat lung and ovarian cancer.

The two companies initially inked the collaboration deal in 2021, which included a total of US$650 million in upfront payments and up to US$2.5 billion in milestone payments, signaling Bristol Myers Squibb’s growing interest in antibody-drug conjugates (ADCs).

However, despite this significant investment, Bristol Myers Squibb is yet to bring an ADC to market, unlike other drugmakers in the industry.

Like all other ADCs, FZEC combines the targeting capabilities of engineered antibodies with the tumor-killing potency of chemotherapy.

Eisai’s drug, the first of its type developed by the company, uses an antibody that homes in on a protein called folate receptor alpha, found in high concentrations in lung, ovarian, and other types of cancer.

This antibody is linked to a chemotherapy based on Eisai’s marketed breast cancer drug, Halaven.

The termination of the collaboration, according to Eisai, is the result of Bristol Myers Squibb’s “portfolio prioritization efforts,” in reference to actions announced by the U.S. drugmaker in April.

This restructuring announcement is expected to have a significant impact on Bristol Myers Squibb, as the company will lay off 2,200 employees, or 6% of its workforce, and discontinue 12 experimental drugs.

Prior to the termination of the collaboration, the two companies had advanced FZEC to Phase 2 trials in chemotherapy-resistant ovarian cancer and non-small cell lung cancer that had metastasized, both of which were sponsored by Bristol Myers Squibb.

Despite this setback, Eisai still has its first-in-human Phase 1 trial in solid tumors underway, where FZEC is being studied in breast and endometrial cancer in addition to lung and ovarian diseases.

Furthermore, the drug was being investigated in Phase 2 trials for chemotherapy-resistant ovarian cancer and non-small cell lung cancer that has spread beyond the lungs, with Bristol Myers Squibb sponsoring these studies.

In the wake of the deal’s termination, Eisai will now own all rights to FZEC, formerly known as MORAb-202, and will solely conduct the global development and commercialization of the agent.

Eisai has expressed its commitment to accelerating the development of FZEC as a high priority, with the hope of delivering it to patients as early as possible.

 Additionally, Eisai plans to refund part of the unused portion of the US$200 million payment it received towards research and development expenses for FZEC from Bristol Myers Squibb under the collaboration agreement and record the remaining amount as other income.

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