Janux Therapeutics (NASDAQ:JANX) shares surged as much as 12% in early trading Thursday following the announcement of a global licensing deal with Bristol Myers Squibb (NYSE:BMY) worth up to $850 million.
The partnership focuses on a next-generation cancer therapy designed to stay "masked" until it reaches a tumor, potentially avoiding the severe toxicities that have long hindered T-cell engagers.
Under the terms of the agreement, San Diego-based Janux will receive an initial $50 million in upfront and near-term milestone payments.
The biotech is eligible for an additional $800 million in development, regulatory, and commercial milestones, plus tiered royalties on future sales.
Janux will spearhead preclinical development through the filing of an Investigational New Drug (IND) application, after which BMS will take over clinical development and global commercialization.
The deal centers on Janux’s proprietary TRACTr and TRACIr platforms.
These technologies engineer drugs that remain inert in the bloodstream—minimizing the risk of life-threatening "cytokine storms"—but activate specifically when they encounter enzymes common in the tumor microenvironment.
The announcement provides a significant boost for Janux investors, coming months after disappointing early data for its lead prostate cancer candidate, JANX007, caused a sharp decline in the company's valuation.
By partnering with a heavyweight like BMS, Janux gains the clinical and commercial infrastructure necessary to advance a candidate targeting a "validated solid tumor antigen" found across multiple cancer types.