Bristol-Myers Squibb Co (NYSE: BMY) has acquired the rights to a fibrosis drug which is currently in development by a company called Promedior. The deal could cost Bristol-Myers $1.25 billion. From the description of the deal, Bristol-Myers will pay $150 million upfront to receive the right for the drug, and the total amount will be paid to acquire Promedior as a whole if clinical trials are successful.
Bristol-Myers is a pharmaceutical company focused on development, manufacturing, licensing distribution and sale of healthcare products. The New York based company has manufacturing facilities in the United States as well as in six other countries.
After the deal, which details from were released today, Bristol will have worldwide rights to Promedior drug candidate PRM-151. This drug has been granted a special FDA designation to increase the speed of the development process. PRM-151 is currently undergoing trials for the treatment of idiopathic pulmonary fibrosis, and a form of blood disorder called myelofibrosis. This disorder, that affects the bone marrow, is classified as a rare disease by the U.S. National Institutes of Health.
The only drug approved by the FDA as a treatment of myelofibrosis is Jakafi, manufactured by Incyte Corporation (NASDAQ: INCY). Jakafi is a blockbuster sales drug, with about $258 million in sales over the last 6 months.