Bristol-Myers Squibb has signed a contract with Alder Biopharmaceuticals for the development and commercialisation of ALD518 – a novel biologic that is undergoing testing as a treatment for rheumatoid arthritis. As part of the agreement, Bristol-Myers Squibb will be granted the worldwide exclusive rights to the drug by Alder for all potential indications except cancer, for which Alder will retain the rights. A cash payment of $85 million (50.7 million pounds) will be made, as well as potential development and regulatory milestone payments of up to $764 million across a selection of various indications. Randall Schatzman, president and chief executive officer of Alder Biopharmaceuticals, stated: "Bristol-Myers Squibb's extensive development and commercial experience in immunology translate into an exceptionally good fit for Alder, especially at this stage of our corporate development."