Engineered toxin bodies are a new class of targeted therapeutics that act through differentiated mechanisms of action and have the ability to force receptor internalization, deliver therapeutic payloads, and directly kill targeted cells through enzymatic inactivation of ribosomes.

Under the agreement, Molecular Templates will conduct research activities for the discovery of next-generation engineered toxin bodies for multiple targets, of which the first has been selected by BMS. BMS will have the option to obtain an exclusive worldwide license to develop and commercialize engineered toxin bodies directed to each selected target.

Following the exercise of the option, BMS would be solely responsible for developing and commercializing the licensed candidates.

BMS will make an upfront payment of $70 million to Molecular; the company is also eligible to receive near-term and development, regulatory, and sales milestone payments of up to approximately $1.3 billion, as well as tiered royalties on future sales.