Orum Therapeutics' stock fell sharply after news that Bristol Myers Squibb (BMS) has halted clinical trials for a drug candidate licensed from the company.
As of 10:22 a.m. on September 18, Orum Therapeutics shares were trading at 37,400 won, down 16,000 won (29.96%) from the previous trading day.
The steep decline in stock price is attributed to BMS's decision to discontinue the development of the acute myeloid leukemia treatment candidate, BMS-986497 (ORM-6151), which it had acquired from Orum Therapeutics.
On September 17, Orum Therapeutics announced that the asset transfer agreement with BMS had ended following the clinical trial halt for BMS-986497. The two companies had entered into the asset transfer agreement in October 2023 for ORM-6151, utilizing Orum Therapeutics' TPD²-GSPT1 platform.
At that time, Orum Therapeutics received a $100 million upfront payment. The total agreement, including the upfront payment and future milestones, was valued at up to $180 million.
Subsequently, BMS renamed ORM-6151 to BMS-986497 and conducted Phase 1 clinical trials in the United States, Europe, and Canada. However, after reviewing clinical data, BMS decided to discontinue the program and informed Orum Therapeutics that it would no longer be obligated to make additional milestone payments.
Orum Therapeutics is not required to return the $100 million upfront payment already received. This announcement was made as the anticipated milestone payments exceeded 10% of the company's assets based on last year's business report.
Orum Therapeutics stated, "We plan to focus our research and development capabilities on our pipeline using the DAC platform."
* This article has been translated by AI.
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