Bristol-Myers gets more rights to Ono antibody in exchange for Japan co-rights to Orencia

US drug major Bristol-Myers Squibb (NYSE:BMY) says it has agreed with Japan’s Ono Pharmaceutical (TYO: 4528) to expand territorial rights to develop and commercialize the anti-PD-1 antibody known as BMS-936558/ONO-4538, and to create a strategic alliance for the co-development and co-commercialization of the US firm’s rheumatoid arthritis drug Orencia (abatacept) in Japan.

BMS-936558/ONO-4538, a fully human anti-PD-1 antibody, is an investigational cancer immunotherapy generated under a research collaboration entered into in May 2005 between Ono and Medarex. When B-MS acquired Medarex in 2009, it also gained that firm’s’ rights to develop and commercialize the anti-PD-1 antibody in North America. Under the terms of the agreement announced yesterday, Ono will grant B-MS exclusive rights to develop and commercialize BMS-936558/ONO-4538 in the rest of the world, except in Japan, Korea and Taiwan where Ono has retained all rights to the compound.

Also under the agreement, the companies will co-develop and co-commercialize Orencia, a biologic therapy for rheumatoid arthritis, in Japan. The drug is available in more than 50 counties, and was launched by Bristol-Myers KK in September 2010 in Japan where it is indicated for use in patients of rheumatoid arthritis for whom other therapies have failed. Orencia generated second-quarter sales of $228 million for B-MS.