Five Prime gets $30M upfront from Bristol-Myers and will study combination cancer treatment

Five Prime Therapeutics said Monday that it will study a cancer drug regimen that combines one of its drugs with a therapy developed by Bristol-Myers Squibb.

Five Prime said it will get $30 million upfront in the deal. It expects to start an early-stage clinical trial next year that combines Bristol-Myers Squibb Co.'s drug Opdivo with Five Prime's FPA008.

Shares of Five Prime Therapeutics Inc. rose $4.96, or 31 percent, to close at $20.71. Shares of Bristol-Myers Squibb Co. added 7 cents to $58.87.

Opdivo, or nivolumab, is approved in Japan as a treatment for inoperable melanoma. The company expects the Food and Drug Administration to make a ruling on the drug in March. Five Prime is studying FPA008 as a treatment for solid tumors and rheumatoid arthritis. It has no approved drugs.