: Avidity’s stock soars on news of expanded collaboration with Bristol Myers that includes potential to receive up to $2.2 billion in milestone payments

Avidity Biosciences Inc. RNA said Tuesday it’s expanding its cardiovascular collaboration with Bristol Myers Squibb Co. BMY in a deal that will see Avidity receive $100 million upfront with the potential to earn up to $2.2 billion in milestone payments. The news sent Avidity’s stock up 21% in premarket trade. Avidity will receive a $60 million cash payment and Bristol Myers will acquire about $40 million of Avidity’s stock at a purchase price of $7.88 a share. The company is developing a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates, or AOCs. 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,” the company said in a statement. Bristol Myers will fund all future clinical development, regulatory and commercialization activities stemming from the collaboration. Avidity’s stock has fallen 72% in the year through Monday’s close, while the S&P 500 SPX has gained 18.5%.

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