updated - March 28, 2017 Tuesday EDT
Bristol-Myers Squibb Company has announced that it has granted an exclusive right to acquire Promedior, Inc., a clinical stage immunotherapy company pioneering the development of targeted therapeutics to treat fibrotic diseases, for about $1.25 billion, according to a press release issued by Bristol-Myers Squibb.
The acquisition will give Bristol-Myers Squibb worldwide rights to Promedior's lead asset PRM-151.
Bristol-Myers Squibb has been developing a portfolio of fibrosis treatment, which includes the BMS-986020 that treats idiopathic pulmonary fibrosis, according to the press release.
The PRM-151, a recombinant form of human pentraxin-2 protein in Phase 2 development for the treatment of idiopathic pulmonary fibrosis and myelofibrosis, enhances Bristol-Myers Squibb's portfolio of fibrosis treatments.
"Bristol-Myers Squibb continues to invest in building a diverse specialty portfolio, focusing on innovative approaches that can transform the treatment landscape for patients with serious diseases," Francis Cuss, MB BChir, FRCP, executive vice president and chief scientific officer at Bristol-Myers Squibb, said in the press release.
He added that the PRM-151 will complement the company's growing early-stage fibrosis portfolio.
A Reuters report also said that myelofibrosis, one of the conditions that PRM-151 treats, is a condition that is classified as a rare disease by the U.S. National Health Institute.
It affects the bone marrow.
Currently, the only drug approved by the U.S. Food and Drug Administration that can treat myelofibrosis is Jakafi, a drug owned by Incyte Corp., as mentioned in the report.
The drug earned the company about $258 million in sales for the first six months of 2015 that ended on June 30.
Bristol-Myers Squibb said in the press release that the Phase 2 trials of Promedior's drugs that treat idiopathic pulmonary fibrosis and myelofibrosis, will begin in the coming weeks.
Bristol-Myers Squibb's rights to acquire Promedior can be exercised upon the completion of the Phase 2 trials.
Under the terms of the agreement, Bristol-Myers Squibb will be making payments aggregating up to $1.25 billion, according to the released report.
Bristol-Myers Squibb will also be paying an upfront cash of $150 million for the right to acquire Promedior and as payment for services in support of the idiopathic pulmonary fibrosis and myelofibrosis Phase 2 clinical trials.
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