Bristol-Myers Squibb (BMS) has signed a definitive agreement to acquire US-based biotechnology firm Cardioxyl Pharmaceuticals for $2.07bn.
The biotech firm is focused on the discovery and development of new therapeutic agents for treatment of cardiovascular disease.
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The acquisition is scheduled to be closed in the fourth quarter of this year, and will give BMS the rights to Cardioxyl’s new nitroxyl (HNO) donor (prodrug), CXL-1427.
CXL-1427 is in Phase II clinical development as an intravenous treatment for patients with acute decompensated heart failure (ADHF).
As part of the deal, Cardioxyl will receive upfront and near-term payments of up to $300m and about $1.775bn in development, regulatory and sales milestones.
CXL-1427 is a new, improved second-generation prodrug that breaks down chemically to produce HNO and an inactive byproduct after intravenous administration.
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By GlobalDataBMS executive vice-president and chief scientific officer Francis Cuss said: "The acquisition of Cardioxyl strengthens Bristol-Myers Squibb’s heart failure pipeline with a Phase II asset that has the potential to change the course of the disease rather than simply treating the symptoms.
"Bristol-Myers Squibb is uniquely positioned, with our understanding of patient needs in the hospital setting and our heritage in cardiovascular diseases, to continue development of CXL-1427 as a potential new therapy to address the clinical and economic burden of heart failure."
The pre-clinical and early clinical data showed that CXL-1427 improves how the heart muscle contracts and relaxes without increasing heart rate or demand for oxygen.
The company noted that existing therapies for ADHF that improve heart muscle function produce an increase in heart rate and/or oxygen consumption, and are associated with an increased risk for ischemia, arrhythmias and increased mortality.
Cardioxyl president and CEO Christopher Kroeger said: "We are excited about the breadth of drug development capabilities and cardiovascular expertise that Bristol-Myers Squibb will bring to the nitroxyl donor programme.
"Heart failure is an important and under-served therapeutic area and we believe Bristol-Myers Squibb is the optimal partner to bring new therapeutic options to the patients who need them."
HNO has been evaluated for its potential as a treatment for heart failure, it dilates blood vessels and acts directly on the heart through a unique mechanism to safely improve both systolic and diastolic function.
Image: BMS will initially make $300m as an upfront and near-term milestone payment to Cardioxyl. Photo: courtesy of Bristol-Myers Squibb Company.
