Bristol Myers Squibb (BMS) will gain the global rights to Agenus’ investigational cancer drug, AGEN1777, in a deal worth up to $1.38 billion.

Under the licensing agreement, BMS will spearhead development and commercialization of the bispecific antibody, which works by blocking T-cell immunoreceptors and boosting natural killer cells to fight tumors.

Agenus expects to file an Investigational New Drug application with the FDA during this quarter and BMS anticipates developing the drug as a treatment for nonsmall-cell lung cancer among other cancer indications.

BMS will pay Agenus $200 million upfront, with Agenus eligible to receive an additional $1.36 billion in milestones-based payments as well as royalties on sales.