Two-way agreement to share technology and royalties on new cancer drugs

US biotechnology company BioAtla and pharma giant Pfizer have agreed a collaboration to develop new cancer treatments.

BioAtla and Pfizer will share expertise to develop tumor-targeting antibodies chemically bound to cytotoxic drugs. The agreement allows both firms to use each other’s licensed technology, such as BioAtla’s methods for producing highly tumour-specific antibodies and Pfizer’s expertise in coupling chemotherapy agents to antibody drugs, to research and commercialise drug candidates.

Both firms will receive milestone payments for any drugs developed by the other party. For BioAtla, these could reach a total of $1 billion (£660 million), plus royalties on sales of any commercialised candidates.