(RTTNews.com) – Bristol-Myers Squibb Co. Monday said it has received the exclusive option to acquire Galecto Biotech AB and gain worldwide rights to its lead investigational product TD139, a new inhaled inhibitor of galectin-3, in Phase 1 development for the treatment of idiopathic pulmonary fibrosis and other pulmonary fibrotic conditions.
The deal value has the potential to reach $444 million, which includes the option fee, an option exercise fee and subsequent clinical and regulatory milestone payments.
As per the agreement, Bristol-Myers can exercise the option to buy Galecto at any time following the execution of the transaction agreement, but no later than 60 days following completion of the Phase 1b trial. The companies have agreed on pre-clinical trials and a Phase 1 development plan, which will be executed by Galecto during the option period.
Francis Cuss, chief scientific officer of Bristol-Myers Squibb said: “…TD139 provides Bristol-Myers Squibb an opportunity to advance the company’s fibrosis development program with the addition of a promising compound that has the potential to modulate multiple disease pathways.”