Evotec SE (EVO) saw its stock soar 5.05% in pre-market trading on Wednesday, following the announcement of a significant milestone in its partnership with Bristol Myers Squibb (BMY). The German biotech company revealed it had received a $5 million milestone payment from Bristol Myers Squibb, triggering investor enthusiasm.

The milestone payment was prompted by the U.S. Food and Drug Administration's 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.

Looking ahead, Evotec announced that a phase 1 clinical trial for this promising drug candidate is expected to commence next year. This development not only represents a significant step forward in Evotec's collaboration with Bristol Myers Squibb but also underscores the company's growing potential in the competitive biotech landscape. Investors appear to be reacting positively to this news, as reflected in the pre-market stock surge.