A Lexington life sciences company has signed a $150 million agreement with Bristol-Myers Squibb that could result in an aquisition by the pharmaceutical giant.
Promedior, Inc., a company developing drugs to treat diseases such as pulmonary fibrosis, will receive $150 million in exchange for giving Bristol-Myers Squibb exclusive acquisiton rights and rights to its top treatment candidate, PRM-151. Depending on whether certain milestones are hit, the deal could be worth up to $1.25 billion.
PRM-151 is meant to treat idiopathic pulmonary fibrosis, a rare lung condition, and myelofibrosis, a rare bone cancer. US regulators have fast-tracked the drug’s approval process. Phase 2 trials, which generally ensure a drug is safe, will start in the coming weeks, the companies said. New York-based Bristol-Myers Squibb could acquire Promedior at the conclusion of those trials.
“With the strong strategic fit between our companies, we intend to continue to move PRM-151 forward rapidly as a new treatment option to address the unmet needs of patients with myelofibrosis, idiopathic pulmonary fibrosis, and other fibrotic diseases,” said Suzanne L. Bruhn, Promedior’s chief executive, in a news release.
Bristol-Myers Squibb said the deal would bolster its early-stage fibrosis portfolio. The company has signed a similar right-to-acquire deal with Galecto Biotech AB, which also is developing a treatment for idiopathic pulmonary fibrosis.
Promedior’s previous backers include a number of health care venture capital groups, including Polaris Partners and Bio Med Ventures. Shire Plc, one of Lexington’s largest biotech companies, also is an investor.