Valentine’s Day deal is true love for Nektar and Bristol-Myers

A new deal between Bristol-Myers Squibb Co. and Nektar Therapeutics came up candy hearts and roses for investors, sending Nektar shares up 11% and Bristol-Myers shares up 2.3% in Wednesday trade.

The deal is structured in a relatively complex way, effectively serving to limit Bristol-Myers’ BMY, +2.32% upfront payments while giving the drugmaker a cut of net profits and losses for Nektar’s NKTR, +11.02% promising immuno-oncology drug NKTR-214, which the two companies will jointly develop and commercialize.

Under the agreement, Bristol-Myers will pay $1 billion in cash plus $850 million in Nektar stock upfront and get a 35% cut of net profits and losses for NKTR-214.

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