Servier Acquires Black Diamond's Solid Tumor Asset in $780M Deal

French pharmaceutical company Servier has secured a global license for Black Diamond Therapeutics' deprioritized solid tumor candidate BDTX-4933 in a deal worth up to $780 million. The agreement, announced on Wednesday, marks a significant development in the oncology space and provides Black Diamond with an extended cash runway.

Deal Structure and Financial Details

Servier will pay Black Diamond $70 million upfront, with the potential for an additional $710 million in development and sales milestones, plus royalties. The French pharma giant will take responsibility for the development and commercialization of BDTX-4933, a Phase I asset targeting solid tumors with RAS and RAF mutations.

Black Diamond's CEO, Mark Velleca, expressed satisfaction with the deal, stating, "It was clear that Servier was going to cherish this asset." The agreement has had an immediate positive impact on Black Diamond's stock, which jumped more than 40% in pre-market trading following the announcement.

Strategic Implications for Both Companies

Black Diamond's Resource Reallocation

For Black Diamond, this deal represents a strategic shift in resource allocation. The company had deprioritized BDTX-4933 in October 2024 as part of a cost-saving measure, which included staff layoffs. The move was intended to extend the company's cash runway into the second quarter of 2026.

With BDTX-4933 now off its hands, Black Diamond plans to focus its efforts on BDTX-1535, an epidermal growth factor receptor (EGFR) inhibitor currently in Phase II trials for patients with non-small cell lung cancer (NSCLC) carrying EGFR mutations. Velleca confirmed that all proceeds from the Servier deal will be directed toward developing BDTX-1535, extending the company's runway by an additional year.

Servier's Oncology Pipeline Expansion

For Servier, the acquisition of BDTX-4933 aligns with its ongoing strategy to strengthen its oncology portfolio. The company has been actively expanding in this area, having spent $2 billion to acquire Agios' oncology division in December 2020 and partnering with Precision Biosciences on CAR-T therapies for blood cancers and solid tumors.

Servier views BDTX-4933 as a potential best-in-class targeted therapy uniquely designed to address RAS and RAF alterations in solid tumors. The drug candidate could fill a gap in the market for a highly CNS-penetrant RAF inhibitor targeting a broad spectrum of oncogenic conformations.

Clinical Development and Future Prospects

BDTX-4933 had entered Phase I trials in 2023, targeting patients with KRAS, BRAF, and select RAS/MAPK mutation-positive cancers. However, enrollment was halted in October 2024 when Black Diamond deprioritized the asset.

Servier is now poised to restart development, with plans to advance BDTX-4933 across multiple indications, including non-small cell lung cancer. The company will seek to establish a preliminary recommended Phase II dose and generate early evidence of safety, tolerability, and efficacy in patients with cancers harboring BRAF, CRAF, or NRAS mutations.

This acquisition bolsters Servier's already substantial oncology pipeline, which accounted for nearly 70% of the company's R&D spending prior to this deal. The French drugmaker had 16 solid tumor and blood cancer projects in clinical development before acquiring BDTX-4933.