Evotec and Bristol Myers expand deal on protein degradation

Shares of German biotech Evotec (EVT: Xetra) closed up 14.4% at 24.17 euros on Tuesday, after it revealed it has extended and expanded its partnership with Bristol Myers Squibb (NYSE: BMY) in targeted protein degradation, originally signed in 2018.

The initial collaboration has proven to be highly productive in generating a promising pipeline of molecular glue degraders. Based on this success, Bristol Myers Squibb and Evotec extend and expand this partnership for an additional eight years with the goal to further broaden and deepen the strategic alliance.

Molecular glue degraders are small, drug-like compounds that induce interactions between an E3 ubiquitin ligase and a molecular target. This induced interaction results in ubiquitination and subsequent degradation of the recruited protein leading to long-lasting therapeutic effects. Bristol Myers Squibb is a leader in this field based in particular on its unique library of cereblon E3 ligase modulators (CELMoD). Under the terms of the agreement, both parties will leverage all of Evotec’s proprietaryE VOpanOmics and EVOpanHunter platforms as well as AI/ML-based drug discovery and development platforms.

Deal worth a potential $5 billion