Diamond in the rough; Black Diamond (NASDAQ: BDTX) stock is up 25% after news licensing deal
Shares of Black Diamond Therapeutics, Inc. (NASDAQ: BDTX) surged 25% following the announcement of a significant licensing agreement with Servier for its oncology therapy, BDTX-4933. The partnership, which focuses on a targeted therapy for solid tumors, including non-small cell lung cancer (NSCLC), has been well-received by investors, signaling strong market confidence in the drug’s potential and the financial benefits to Black Diamond (NASDAQ: CLAR).
The strategic worldwide licensing agreement grants Servier the rights to develop and commercialize BDTX-4933, a therapy currently in Phase 1 development. Under the terms of the deal, Black Diamond will receive an upfront payment of $70 million, with the possibility of earning up to $710 million in development and commercial sales milestone payments, as well as tiered royalties on global net sales.
The enthusiasm in the market stems from the therapy’s promise as a best-in-class treatment targeting both RAS mutations and RAF alterations in solid tumors. The collaboration underscores Servier’s commitment to oncology and Black Diamond’s focus on developing MasterKey therapies that address unmet medical needs in cancer patients.
Claude Bertrand, Executive Vice-President of R&D at Servier, highlighted the partnership’s importance, stating, “Our partnership to develop BDTX-4933 is an important opportunity in targeted cancer therapies, as we believe we can serve more people by helping the right patients find the right treatment, at the right time.” He expressed confidence in accelerating the development of BDTX-4933.
Mark Velleca, M.D., Ph.D., President and CEO of Black Diamond Therapeutics, also commented on the deal’s significance, emphasizing Servier’s expertise in oncology and the shared mission to advance oral cancer therapies designed to improve patient lives.
BDTX-4933’s design to target specific alterations in solid tumors positions it uniquely in the oncology space. The ongoing Phase 1 study is evaluating the therapy’s safety, tolerability, and antitumor activity in adults with advanced or metastatic cancers with specific mutations.