Date: 2014-11-03
Type of information: Company acquisition
Acquired company: Galecto Biotech (Sweden)
Acquiring company: BMS (USA - NY)
Amount: up to $444 million
Terms: * On November 3, 2014, BMS and Galecto Biotech announced that the companies, together with the Galecto shareholders, have entered into an agreement that provides BMS the exclusive option to acquire Galecto Biotech and gain worldwide rights to its lead asset TD139, a novel inhaled inhibitor of galectin-3 in Phase 1 development for the treatment of idiopathic pulmonary fibrosis (IPF) and other pulmonary fibrotic conditions. Total aggregate payments under the agreement have the potential to reach $444 million, which includes the option fee, an option exercise fee and subsequent clinical and regulatory milestone payments. BMS is also developing an early stage fibrosis portfolio that includes BMS-986020, a lysophosphatidic acid 1 (LPA1) receptor antagonist in development for the treatment of IPF.
Details: Galecto Biotech is focused on developing novel drugs for the treatment of fibrosis, inflammation and other serious human diseases. The company\'s products target galectins or galactoside binding lectins, which are a group of proteins shown to be involved in many disease processes. Galectin-3 is a protein which binds to carbohydrate structures in the body, and plays a central role in various types of fibrosis. By targeting and inhibiting the protein\'s binding ability, galectin-3 inhibitors represent a promising approach to treat diseases that exhibit galectin-3 expression such as IPF, a chronic, progressive form of lung disease characterized by the scarring of lung tissue for which there are limited treatment options. TD139 is a highly potent, specific inhibitor of the galactoside-binding pocket of galectin-3 formulated for inhalation, which enables direct targeting of the fibrotic tissue in the lungs, while minimizing systemic exposure. Galecto Biotech is funded by Novo Seeds, MS Ventures, Sunstone Capital and SEED Capital.
Related: Rare diseases
