Avidity and BMS enter $2.3 billion research collaboration

Shares of US RNA-focussed biotech Avidity Biosciences (Nasdaq: RNA) leapt as much as 35% pre-market, after it announced a global licensing and research collaboration with pharma major Bristol Myers Squibb (NYSE: BMY) focused on the discovery, development and commercialization of multiple cardiovascular targets.

Although heavily backloaded, the deal comes with potential cumulative payments of up to $2.3 billion, and Avidity’s shares were still up nearly 10% at $6.76 mid-morning.

Avidity’s proprietary antibody oligonucleotide conjugates (AOCs) are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to target the root cause of diseases previously untreatable with RNA therapeutics. This strategic collaboration broadens the reach of AOCs through the expansion of the existing relationship with Bristol Myers Squibb. Avidity continues to advance its internal research and development programs in rare cardiac indications.