Shares of ORIC Pharmaceuticals (NASDAQ: ORIC) jumped 70% on Thursday after announcing a new clinical development collaboration with Pfizer to conduct a Phase 2 study of ORIC-533, an oral small molecule inhibitor of CD73, in multiple myeloma.

The two companies say that they will also explore the potential for ORIC-533 to be combined with elranatamab, Pfizer's investigational B-cell maturation antigen (BCMA) CD3-targeted bispecific antibody, in a Phase 2 combination study.

ORIC says it will maintain economic ownership and control of ORIC-533 while Pfizer's Chief Scientific Officer of Oncology Research & Development, Dr. Jeff Settleman, will join ORIC's Scientific Advisory Board.

“We are excited to support the clinical development of ORIC-533, which represents a novel mechanism in multiple myeloma and a promising product candidate to combine with elranatamab,” said Dr. Settleman. “Given the high unmet need for patients with multiple myeloma and potential for relapse, we believe new treatments and combinations with novel mechanisms of action that counter mechanisms leading to resistance are essential to improving outcomes. We are encouraged by the potential of ORIC-533 and, through our relationship with ORIC, look forward to continuing to work toward improving the lives of people with cancer.”

The collaboration is expected to help advance the clinical development program for ORIC-533, which is being developed as a potential first-in-class treatment for multiple myeloma.

In addition to the clinical development collaboration, Pfizer has agreed to make a strategic $25 million equity investment into the company.

ORIC says that it will use proceeds from the offering to fund ongoing and planned clinical trials, including studies of ORIC-533, ORIC-114 and ORIC-944.

The equity investment from Pfizer is expected to extend ORIC's cash runway into the first half of 2025.

ORIC Pharmaceuticals is a clinical-stage biopharmaceutical company focused on developing treatments to overcome resistance in cancer. Shares trade on the NASDAQ under the symbol ORIC.