Biotech Values

[DewDiligence]

BMY/Ono collect $625M+royalties from MRK in global PD-1-patent settlement:

http://finance.yahoo.com/news/bristol-myers-squibb-ono-pharmaceutical-210100587.html

As part of the agreement, Merck will make an initial payment of $625 million to Bristol-Myers Squibb and Ono. Merck is also obligated to pay ongoing royalties on global sales of Keytruda of 6.5% from January 1, 2017 through December 31, 2023, and 2.5% from January 1, 2024 through December 31, 2026. Under the agreement, the companies have also granted certain rights to each other under their respective patent portfolios pertaining to PD-1.

The royalties will be shared between Bristol-Myers Squibb and Ono in a 75/25 percent allocation, respectively.

The 72/25 split between BMY and Ono pertains to the $625M lump sum also.

The up-front amount and future royalties comprise a nice chunk of change even for a company as big as BMY.