Innate Pharma SA's Phase I-stage cancer candidate IPH2102 landed the firm a sizeable up-front payment of $35 million in a potential $465 million collaboration with Bristol-Myers Squibb Co.

Given big pharma's current trend of smaller up-fronts for early stage programs, the terms are impressive. In fact, Herve Brailly, CEO of Marseilles, France-based Innate, said in a press release that the partnership marks the largest licensing deal ever signed for a French biotech.

The up-front money adds to the €30.4 million (US$43.5 million) on Innate's balance sheet as of Feb. 4.

Shares of Innate (PARIS:IPH) closed flat at €1.33 Wednesday, though the markets closed before news of the collaboration hit the wires.

The agreement gives Princeton, N.J.-based BMS exclusive worldwide rights to IPH2102, as well as to related compounds designed to block KIR receptors, and the deal covers all potential indications. A recombinant form of Innate's lead anti-KIR monoclonal antibody IPH2102, the newly partnered drug, is in a Phase I trial in cancer patients and is expected to enter Phase II testing in acute myeloid leukemia (AML).

IPH2102 is designed to work by blocking the interaction between KIR (killer-cell immunoglobulin-like receptors) on natural killer cells with their ligands.

Under the terms, Innate will continuing developing the drug in AML through the end of Phase II and also will provide preclinical support.

BMS will fund work on IPH2102 and agreed to pay up to $430 million in development and commercialization milestones, plus tiered, double-digit royalties on worldwide net sales.

Meanwhile, Innate has its lead anti-KIR program. IPH2102, in Phase II testing in multiple myeloma (MM) as a maintenance therapy, in combination with Revlimid (lenalidomide, Celgene Corp.) in relapsed MM patients and recently started a National Cancer Institute-sponsored Phase II trial in smoldering myeloma.

The company also is partnered with Bagsvaerd, Denmark-based Novo Nordisk A/S on inflammatory and autoimmune diseases.

Most recently, Innate received an undisclosed milestone payment after Novo filed a European trial application for IPH2102, a humanized antibody. Phase I testing is expected to start this year.