Bristol-Myers Squibb and PDL BioPharma announced that they entered into a collaborative deal to develop and market PDL's elotuzumab, currently in Phase I testing for multiple myeloma. The agreement could be worth up to $710 million for PDL.

Under the terms of the alliance, Bristol-Myers Squibb would make an upfront cash payment of $30 million to PDL for the development and marketing rights to elotuzumab. PDL could receive additional payments of up to $680 million depending on whether the compound reaches certain milestones in multiple myeloma and other potential oncology indications. If elotuzumab is approved, the companies would share profits on sales of the product in the US, while PDL would receive royalties on net sales of the drug outside the country.

The deal also includes the option for Bristol-Myers Squibb to expand the collaboration to include PDL241, another anti-CS1 antibody, upon the completion of certain preclinical studies. If Bristol-Myers Squibb were to exercise that option, PDL would be eligible to receive additional payments as part of the agreement.