Bristol-Myers Squibb Signs Exclusive Option Agreement to Acquire Galecto Biotech AB & Its Novel Galectin-3 Inhibitor in Devel...
November 03 2014 - 8:30AM
Business Wire
Bristol-Myers Squibb Company (NYSE:BMY) and Galecto Biotech AB
today announced that the companies, together with the Galecto
shareholders, have entered into an agreement that provides
Bristol-Myers Squibb the exclusive option to acquire Galecto
Biotech AB and gain worldwide rights to its lead asset TD139, a
novel inhaled inhibitor of galectin-3 in Phase 1 development for
the treatment of idiopathic pulmonary fibrosis (IPF) and other
pulmonary fibrotic conditions. Total aggregate payments under the
agreement have the potential to reach $444 million, which includes
the option fee, an option exercise fee and subsequent clinical and
regulatory milestone payments.
“Delivering innovative medicines that halt or slow the
progression of fibrotic diseases is a key part of our R&D
strategy to build a sustainable pipeline,” said Francis Cuss, MB
BChir, FRCP, executive vice president and chief scientific officer,
Bristol-Myers Squibb. “TD139 provides Bristol-Myers Squibb an
opportunity to advance the company’s fibrosis development program
with the addition of a promising compound that has the potential to
modulate multiple disease pathways.”
“Galecto has, in close collaboration with our founders, managed
to demonstrate the importance of galectin-3 as an anti-fibrosis
target,” said Hans Schambye, M.D., Ph.D, chief executive officer,
Galecto Biotech. “We have confirmed the anti-fibrotic activity of
our lead compound, TD139, in several preclinical models and now
have taken the compound into clinical testing in healthy volunteers
followed by patient studies in early 2015.”
“Partnering with Bristol-Myers Squibb validates what we have
created in Galecto, and will allow us to advance TD139 and our
portfolio of other galectin modulators for several important human
conditions,” said Magnus Persson, M.D., Ph.D, chairman,
Galecto.
Galectin-3 is a protein which binds to carbohydrate structures
in the body, and plays a central role in various types of fibrosis.
By targeting and inhibiting the protein’s binding ability,
galectin-3 inhibitors represent a promising approach to treat
diseases that exhibit galectin-3 expression such as IPF, a chronic,
progressive form of lung disease characterized by the scarring of
lung tissue for which there are limited treatment options. TD139 is
a highly potent, specific inhibitor of the galactoside-binding
pocket of galectin-3 formulated for inhalation, which enables
direct targeting of the fibrotic tissue in the lungs, while
minimizing systemic exposure.
Bristol-Myers Squibb is developing an early stage fibrosis
portfolio that includes BMS-986020, a lysophosphatidic acid 1
(LPA1) receptor antagonist in development for the treatment of
IPF.
Under terms of the agreement, Bristol-Myers Squibb can exercise
the option to acquire Galecto at any time following the execution
of the transaction agreement but no later than 60 days following
completion of the Phase 1b trial. The companies have agreed on
pre-clinical studies and a Phase 1 development plan that will be
executed by Galecto AB during the option period.
About Galecto Biotech AB
Galecto Biotech is focused on developing novel drugs for the
treatment of fibrosis, inflammation and other serious human
diseases. The company’s products target galectins or galactoside
binding lectins, which are a group of proteins shown to be involved
in many disease processes. Galecto Biotech’s high potency Galectin
Modulators may open new treatment possibilities for many patients.
The company is led by top-level scientists and biotech executives.
Galecto Biotech is funded by Novo Seeds, MS Ventures, Sunstone
Capital and SEED Capital. Galecto Biotech is located in Copenhagen,
Denmark, with close proximity to the founders’ research groups.
About Bristol-Myers Squibb
Bristol-Myers Squibb is a global biopharmaceutical company whose
mission is to discover, develop and deliver innovative medicines
that help patients prevail over serious diseases. For more
information, please visit www.bms.com or follow us on Twitter at
http://twitter.com/bmsnews.
Bristol-Myers Squibb Forward-Looking Statement
This press release contains “forward-looking statements” as that
term is defined in the Private Securities Litigation Reform Act of
1995 regarding the research, development and commercialization of
pharmaceutical products. Such forward-looking statements are based
on current expectations and involve inherent risks and
uncertainties, including factors that could delay, divert or change
any of them, and could cause actual outcomes and results to differ
materially from current expectations. No forward-looking statement
can be guaranteed. Among other risks, there can be no guarantee
that the investigational compounds discussed in this release will
be successfully developed or approved for any of the indications
described in this release or that we will exercise our option to
acquire Galecto. Forward-looking statements in this press release
should be evaluated together with the many uncertainties that
affect Bristol-Myers Squibb's business, particularly those
identified in the cautionary factors discussion in Bristol-Myers
Squibb's Annual Report on Form 10-K for the year ended December 31,
2013 in our Quarterly Reports on Form 10-Q and our Current Reports
on Form 8-K. Bristol-Myers Squibb undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise.
Bristol-Myers SquibbMedia:Ken Dominski,
609-252-5251ken.dominski@bms.comorLaura Hortas,
609-252-4587laura.hortas@bms.comorInvestors:Ranya Dajani,
609-252-5330ranya.dajani@bms.comorRyan Asay,
609-252-5020ryan.asay@bms.comorGalectoHans Schambye, +45
26373726hans.schambye@galecto.com
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