Print Page | Sign In | Join
News & Press: Business Achievements

Bristol-Myers to buy private cancer drugmaker for up to $1.25 billion

Monday, February 23, 2015  
Share |

 Bristol-Myers to buy private cancer drugmaker for up to $1.25 billion


(Reuters) - Bristol-Myers Squibb Co (BMY.N) said it would buy privately held drugmaker Flexus Biosciences Inc for up to $1.25 billion to add an emerging class of cancer-fighting drugs to its pipeline.

The deal value includes $800 million in an upfront payment and up to $450 million of milestone payments, Bristol-Myers said in a statement on Monday.

Separately, Bristol-Myers also signed a deal with Rigel Pharmaceuticals Inc (RIGL.O) to develop a line of cancer therapies that can be used with Bristol-Myers's immunotherapy cancer drugs Opdivo and Yervoy.

Bristol-Myers will pay Rigel $339 million, including milestones, bringing the drugmaker's investment in cancer treatments on Monday to $1.59 billion.

Buying Flexus will give Bristol-Myers rights to an experimental cancer compound belonging to a class of drugs called IDO1-inhibitors, which work by disrupting mechanisms through which cancer cells hide from the body's immune cells.

Bristol-Myers currently has eight cancer compounds in various stages of development, four of which are designed to make the body fight cancer on its own. None of them are IDO-inhibitors.

Flexus's remaining assets, which are also cancer related, will be part of a newly formed company, Bristol-Myers said.

Bristol-Myers shares closed at $60.52 on Friday. They were untraded on Monday before the bell. Rigel's shares shot up 43 percent to $3.65 in premarket trading.

(Reporting by Vidya L Nathan in Bengaluru; Editing by Savio D'Souza)


About BioFlorida

BioFlorida represents nearly 6,000 establishments and research organizations in the biopharmaceutical, medical technology and bioagriculture sectors that collectively employ nearly 83,000 Floridians.


Members of the BioFlorida network include emerging and established life science companies, universities, research institutions, hospitals, medical centers, incubators, economic development agencies, investors and service providers.


Email us for a regional Chapter sponsorship.