# Bristol-Myers Squibb to acquire rights to prostate cancer drug for $350m

OTELFINGEN, Switzerland - Bristol-Myers Squibb (NYSE: BMY), a prominent pharmaceutical company with a market capitalization of $101.7 billion and a "GOOD" InvestingPro financial health rating, announced its subsidiary RayzeBio will acquire worldwide rights to develop and commercialize OncoACP3, a clinical-stage prostate cancer treatment, from Philochem AG in a deal worth up to $1.35 billion.

Under the agreement announced Tuesday, Philochem will receive an upfront payment of $350 million and could earn up to an additional $1 billion in development, regulatory and commercial milestone payments. The company will also receive royalties ranging from mid-single to low double-digit percentages on global sales of both therapeutic and diagnostic applications of OncoACP3. According to InvestingPro data, BMY maintains strong profitability with a 74.7% gross margin and generates substantial free cash flow, supporting its ability to pursue strategic acquisitions.

OncoACP3 is a small molecule ligand that targets Acid Phosphatase 3, described as a novel target in prostate cancer. The compound is currently being evaluated in a Phase I trial, with initial diagnostic data showing selective tumor uptake with minimal healthy tissue absorption.

"This collaboration enhances our leadership in the rapidly advancing radiopharmaceuticals space," said Ben Hickey, President of RayzeBio, in the press release statement.

The transaction, which remains subject to regulatory approvals and customary closing conditions, is expected to complete in the third quarter of 2025.

Philochem is a wholly-owned subsidiary of the Philogen Group, while RayzeBio operates as a subsidiary of Bristol-Myers Squibb (NYSE: BMY).

The agreement represents Bristol-Myers Squibb’s strategic expansion into prostate cancer treatments through radiopharmaceutical technology. Preparations for a Phase I therapeutic study using actinium-based OncoACP3 are currently underway.

In other recent news, Bristol Myers Squibb has received approval from the European Commission for a new subcutaneous formulation of Opdivo, a significant development in cancer treatment administration. This approval follows the Phase 3 CheckMate -67T trial, which demonstrated that the subcutaneous version is noninferior to the intravenous form in terms of pharmacokinetics and safety. Additionally, Bristol Myers Squibb announced a 50/50 co-development agreement with BioNTech for the bispecific antibody BNT327, aimed at treating solid tumors. This partnership includes a $1.5 billion upfront payment to BioNTech, with potential milestone payments totaling up to $7.6 billion. Analysts from Raymond James maintained a Market Perform rating on Bristol Myers Squibb, noting the collaboration’s potential to enhance the company’s growth portfolio. Citi analysts also reiterated a Neutral rating following promising phase 1 results for Bristol Myers Squibb’s drug iza-bren, targeting lung cancer. Meanwhile, BMO Capital Markets maintained a Market Perform rating, citing a slight increase in prescriptions for Bristol Myers Squibb’s schizophrenia medication, Cobenfy. This series of developments highlights Bristol Myers Squibb’s ongoing efforts to expand its oncology and psychiatric medication portfolios.

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