BMS pays $125m to Promedior in second 'right-to-buy' option in fibrosis space
An upfront payment of $125m gives Bristol-Myers Squibb an exclusive right to acquire the Massachusetts-based biotech which is developing PRM-151 - a recombinant form of human pentraxin-2 protein - for the treatment of idiopathic pulmonary fibrosis (IPF) and myelofibrosis (MF).
The candidate, which has Fast Track designation in the US, is in Phase II clinical trials and would add to BMS’s fibrotic diseases development programme, according to spokesman Ken Dominski.
“[The deal brings] the opportunity to acquire a promising compound that has shown encouraging clinical data in both IPF and MF and preclinical data suggesting potential in other fibrotic diseases,” he told this publication, adding the compound would complement the firm’s pipeline which includes BMS-986020, a lysophosphatidic acid 1 (LPA1) receptor also in Phase II.
If BMS decides to act on the agreement, it could end up paying Promedior up to $1.25bn.
Option Structure
The decision to buy the rights to Promedior rather than buying the company out-right is similar to a deal penned last year with Galecto Biotech which is developing an inhaled inhibitor of galectin-3, also in the fibrosis space.
This latest option allows Promedior to carry out a development plan determined between the two firms.
“Because PRM-151 was in clinical development as a later stage asset, an option structure provides both parties with a way to fairly assess the value of this therapeutic in fibrotic diseases with little disruption in clinical progress,” Dominski said.
“There are two robust clinical programs that are on-going, and completion of either of these Phase 2 studies, in MF and IPF, will further reveal the full value of PRM-151.”
As part of the agreement, the core direction for the development plan is set, as BMS and Promedior have both agreed to the development plan that will be executed by Promedior for PRM-151 with clinical studies in MF and IPF.
Data from these trials is expected to be available in 2017, a Promedior spokesperson told us, at which point BMS can exercise its option to acquire the company.
