Shares of BioNTech SE (BNTX) are skyrocketing in Monday's pre-market trading, surging 15.38% following the announcement of a major partnership with Bristol Myers Squibb (BMY) to co-develop and co-commercialize BioNTech's cancer drug candidate BNT327.

The collaboration, potentially worth up to $11.1 billion, marks a significant milestone for BioNTech as it seeks to expand its oncology portfolio beyond its successful COVID-19 vaccine. Under the terms of the deal, Bristol Myers will pay BioNTech $1.5 billion upfront, along with $2 billion in non-contingent anniversary payments through 2028. BioNTech is also eligible to receive up to an additional $7.6 billion in development, regulatory, and commercial milestone payments.

BNT327, a bispecific antibody targeting PD-L1 and VEGF-A, is currently being evaluated in multiple clinical trials, including Phase 3 studies for extensive-stage small cell lung cancer and non-small cell lung cancer. The partnership aims to accelerate the development of BNT327 across various solid tumor types, leveraging the combined expertise and resources of both companies. This collaboration could potentially challenge Merck's blockbuster cancer drug Keytruda in the lucrative oncology market.

The deal underscores the growing interest in next-generation cancer immunotherapies and reflects BioNTech's ambition to establish itself as a major player in the oncology field. For Bristol Myers, the partnership bolsters its cancer drug pipeline as it faces increasing competition for its existing products. Investors are responding positively to the news, viewing it as a strategic move that could drive long-term growth for both companies in the rapidly evolving cancer treatment landscape.