By Ron Winslow 

Bristol-Myers Squibb Co. agreed to invest in and co-develop gene-therapy medicines with the Dutch company uniQure NV, reflecting surging interest among major pharmaceutical companies in the treatment strategy.

Under the agreement, Bristol-Myers will have exclusive rights to develop uniQure's gene remedies for cardiovascular diseases, including a treatment for heart failure. All told, the pact calls for the companies to collaborate on up to 10 genetic targets, potentially including some against other diseases.

Bristol-Myers has gained attention as a leader in developing drugs that enlist the power of the immune system against cancer. The new pact marks the company's first major foray into gene therapy and follows recent similar announcements from such companies as Pfizer Inc., Novartis AG and Sanofi SA.

Recent advances from small biotech companies and academic laboratories in such areas as ophthalmology, hemophilia and such rare diseases as beta thallasemia are triggering excitement in a field that is regaining traction after major setbacks more than a decade ago.

UniQure's drug Glybera, for a rare disorder called lipoprotein lipase deficiency, was approved in 2012 in Europe, where it is now being launched. It is the only gene therapy approved in the Western world, and the company is planning a trial to seek approval in the U.S. The company is also developing gene-therapy candidates for hemophilia and Parkinson's and Huntington's diseases. Neither of them nor Glybera is included in the Bristol-Myers agreement.

Under the pact, which is expected to close in the second quarter, Bristol-Myers will pay uniQure $50 million upfront and another $15 million upon selection of three additional treatment targets within three months. It will also take a 4.9% equity stake in the company at the closing and an additional 5% at a 10% premium to uniQure's then-existing share price before the end of 2015.

Joern Aldag,uniQure's chief executive officer, said the company was attracted to Bristol-Myers because of its long-standing expertise in cardiovascular disease and by its development of immuno-oncology drugs. "Bristol-Myers has a track record in embracing innovative technology," he said. "They're clearly determined to take gene therapy to the next level."

Unlike most applications of gene therapy, cardiovascular disease--and especially heart failure--is a common malady with a potentially huge market. The companies estimate that some 20 million people world-wide are currently diagnosed with heart failure, a number that could double by 2030. It is a major cause of hospital admissions.

The lead gene therapy candidate in the new pact is for heart failure and is intended to increase production of a protein called S100a1, which the company describes as a major regulator of heart function--including force of contractions and growth of heart muscle cells. Though it has been studied with encouraging results in animals, the therapy isn't likely to be tried in humans until 2017.

Other companies are also pursuing gene therapy for heart failure. Celladon Corp., San Diego, expects to disclose data as soon as late this month from a 250-patient study of its drug Mydicar. The treatment is designed to restore levels of an enzyme called SERCA2a in order to improve heart-muscle contractions. Closely held Renova Therapeutics, San Diego, is pursuing a treatment targeting yet another mechanism.

In the Bristol pact, successful development of the treatments would trigger additional payments to uniQure: up to $254 million upon reaching certain milestones for S100a1, and up to $217 million each for other gene-therapy products, the companies said.

Angela Chen contributed to this article.

Write to Ron Winslow at ron.winslow@wsj.com

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