Evotec SE (EVO) stock surged 5.39% in pre-market trading on Wednesday, following an announcement of a significant milestone in its collaboration with Bristol Myers Squibb (BMY). The German biotech company revealed it had received a $5 million milestone payment, sparking investor enthusiasm.

The milestone payment was triggered by the U.S. Food and Drug Administration's (FDA) acceptance of an Investigational New Drug (IND) application for a product candidate developed under the companies' protein degradation partnership. Specifically, the drug candidate is described as a cereblon E3 ligase modulator, showcasing Evotec's progress in this cutting-edge area of drug development.

This development marks a significant step forward in Evotec's collaboration with Bristol Myers Squibb and underscores the company's growing potential in the competitive biotech landscape. Looking ahead, Evotec announced that a phase 1 clinical trial for this promising drug candidate is expected to commence next year, further bolstering investor confidence in the company's pipeline and research capabilities.