A deal is a deal, Janux Therapeutics shareholders benefit greatly after Bristol Myers Squibb collaboration

Janux Therapeutics (NASDAQ: JANX) stock surged 12% on Thursday after the clinical-stage biopharmaceutical company announced a collaboration and exclusive worldwide license agreement with Bristol Myers Squibb (NYSE: BMY).

The partnership will focus on developing an undisclosed novel tumor-activated therapeutic targeting a validated solid tumor antigen expressed across several human cancer types. Under the agreement, Janux will complete preclinical development up to IND submission, while Bristol Myers Squibb will hold the IND and be responsible for subsequent development and global commercialization.

Janux may receive up to $50 million in upfront and near-term milestone payments, with potential for additional development, regulatory, and commercial milestones totaling approximately $800 million. The company is also entitled to tiered royalties on global product sales.

“This collaboration marks a significant milestone for Janux, validating the strength of our tumor-activated platforms and expanding our reach in solid tumor oncology,” said David Campbell, Ph.D., President and CEO of Janux.