Date: 2016-04-01
Type of information: Company acquisition
Acquired company: Padlock Therapeutics (USA - MA)
Acquiring company: BMS (USA - NY)
Amount: up to $ 600 million
Terms: * On April 1, 2016, BMS announced that it has completed the previously announced planned acquisition of Padlock Therapeutics. * On March 23, 2016, BMS and Padlock Therapeutics announced that the companies have signed a definitive agreement under which BMS will acquire all of the outstanding capital stock of Padlock, a private, Cambridge, Massachusetts-based biotechnology company dedicated to creating new medicines to treat destructive autoimmune diseases. The transaction includes upfront and near term contingent milestone payments of up to $225 million and additional contingent consideration of up to $375 million upon the achievement by BMS of certain development and regulatory events. The transaction has been approved by the boards of directors of both companies and by the stockholders of Padlock. BMS and Padlock anticipate the transaction will close during the second quarter of 2016.
Details: The acquisition will give BMS full rights to Padlock’s Protein/Peptidyl Arginine Deiminase (PAD) inhibitor discovery program focused on the development of potentially transformational treatment approaches for patients with rheumatoid arthritis. Padlock’s PAD discovery program may have additional utility in treating systemic lupus erythematosus (SLE) and other autoimmune diseases. PADs are a family of enzymes that produce autoantigens which play an active role in the development and progression of rheumatoid arthritis and other autoimmune diseases. Inhibiting PADs offers the potential to prevent progression of autoimmune diseases early in their evolution. In identifiable high risk patients with pre- and early rheumatoid arthritis, PAD inhibition could lead to a paradigm shift in treatment by preventing disease development and resulting joint destruction. PAD inhibition in combination with current standard of care therapies may increase and maintain the durable remission rates in rheumatoid arthritis patients with rapidly progressive disease.
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