Biopharmaceutical company Bristol-Myers Squibb Comp any (NYSE:BMY) announced on Friday that it entered into an exclusive global strategic collaboration agreement for the co-development and co-commercialization of Eisai Co Ltd's antibody drug conjugate(ADC), MORAb-202.

MORAb-202 is Eisai's first ADC and is composed of its in-house developed anticancer agent farletuzumab, a humanized IgG1 monoclonal antibody that binds to the folate receptor alpha (FRα) and in-house developed anticancer agent eribulin.

Currently, Eisai is investigating MORAb-202 in FRα-positive solid tumors (inclusive of endometrial, ovarian, lung and breast cancers) in two studies: a Phase 1 clinical study in Japan and a Phase 1/2 clinical study in the US, with registrational stage of development next year.

The partners will jointly develop and commercialize MORAb-202 in Japan, China, Asia-Pacific region, the US, Canada, Europe, including the EU and the UK and Russia. Bristol Myers Squibb will be solely responsible for developing and commercializing the drug in regions outside of the collaboration territories. Eisai will remain responsible for the manufacturing and supply of MORAb-202 globally.

Under the terms of the agreement, Eisai will receive USD650m, including USD200m as payment toward research and development expenses, as well as entitled to receive up to USD2.45bn in potential future development, regulatory and commercial milestones.

The parties will share profits, research and development and commercialization costs in the collaboration territories and Bristol Myers Squibb will pay Eisai a royalty on sales outside of the collaboration territories.