Cancer drug development deal

The drugmaker Bristol-Myers Squibb Co. said Wednesday it agreed to a deal with Japan's Ono Pharmaceutical Co. Ltd. for expanded rights to develop a potential cancer treatment.

The companies also will develop and sell the rheumatoid arthritis treatment Orencia in Japan.

Bristol-Myers, based in New York, said Ono, based in Osaka, Japan, has granted it exclusive rights to develop and sell the potential cancer treatment worldwide except in Japan, Korea and Taiwan. The treatment is in early and mid-stage testing on several forms of cancer and aims to allow the immune system to work against tumor cells.

The treatment was developed under a research collaboration between Ono and Medarex Inc., which Bristol-Myers acquired in 2009. With that deal, Bristol-Myers had acquired the rights to develop the drug in North America.

Orencia is a biologic therapy that suppresses the inflammation pathway in rheumatoid arthritis. It was launched in Japan last year.

Bristol-Myers shares edged up a penny to $31.50 in pre-market trading. The company's shares have climbed steadily since closing at $26.46 on Aug. 10.