New York-based biopharmaceutical company Bristol-Myers Squibb Company (BMY) and Alder Biopharmaceuticals, Inc., said on Tuesday that they have signed an agreement for the development and commercialization of ALD518 with significant focus on rheumatoid arthritis.
ALD518, which has completed Phase IIa development for rheumatoid arthritis, is designed to block a pro-inflammatory molecule called interleukin-6 (IL-6), which plays a key role in the inflammatory cascade associated with rheumatoid arthritis. It is also being studied by Alder for the treatment of cancer and in cancer supportive care.
Under the terms of the deal, Alder will grant Bristol-Myers Squibb worldwide exclusive rights to develop and market ALD518 for all potential indications except cancer, for which Alder will retain rights. Alder will also grant Bristol-Myers Squibb an option to co-develop and commercialize outside the United States.
Bristol-Myers will pay a cash payment of $85 million; potential development-based and regulatory-based milestone payments of up to $764 million; royalties on net sales; and potential sales-based milestones that may exceed $200 million.
In addition, Alder has an option to require Bristol-Myers Squibb to make an equity investment of up to $20 million in Alder during an initial public offering.
The deal is subject to antitrust clearance and other customary regulatory approvals.
BMY closed Monday's regular trading at $23.05.
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