Bristol-Myers Squibb and Simcere to ally on oncology compound

Bristol-Myers Squibb has entered into a new collaboration with Chinese company Simcere Pharmaceutical Group on the development of a new cancer drug.

The agreement, financial terms for which were not disclosed, will see the two firms work together to co-develop BMS-817378, which is currently in the preclinical testing phase.

Bristol-Myers Squibb will retain exclusive rights to develop and commercialise the drug worldwide, while Simcere will take responsibility for selling the product in its native China.

This alliance between the global pharmaceutical company and the Chinese healthcare firm was hailed by both organisations as a groundbreaking initiative.

Francis Cuss, senior vice-president for research at Bristol-Myers Squibb, said: "Working together, we are building on the strengths of both organisations to develop potential medicines and help patients."

Last week, the company published its third quarter financial results, reporting growing sales of drugs such as the heart disease agent Plavix.