Global Insight Perspective | |
Significance | Adnexus, based in Waltham, Massachusetts (U.S.) could receive earn-out payments of as much as US$75 million, in three increments of US$25 million. |
Implications | Bristol-Myers Squibb (BMS) will strengthen its biologics manufacturing abilities and enhance its portfolio with targeted biologics developed by Adnexus, called Adnectins. |
Outlook | BMS's strategy is to transform its pharmaceutical business into a biopharmaceutical business model, placing a significant focus on the potential of Adnectins—including experimental drug Angiocept, currently in Phase I development. The most significant advantage of BMS's acquisition is the fact that Adnexus exclusively controls its patented PROfusion technology and solely owns an Adnectin patent estate. |
All-Cash Deal
U.S. pharmaceutical giant Bristol-Myers Squibb (BMS) is acquiring Waltham, Massachusetts-based biotechnology company Adnexus Therapeutics for US$430 million in an all-cash deal, the company announced in a press release. BMS will acquire all of Adnexus's issued and outstanding shares of capital stock for a gross purchase price of US$430 million, with the net purchase price of US$415 million. BMS could also pay an additional US$75 million, in three increments of US$25 million, in the event that certain development and regulatory milestones are achieved. Under the agreement, Adnexus Therapeutics will become a subsidiary of BMS , retaining its name and its 55 employees.
The acquisition is set to advance BMS's biologics strategy and ownership of a new therapeutic class of targeted biologics, called Adnectins. Adnectins are an emerging proprietary therapeutic class designed using PROfusion technology. They are based on human fibronectin, an extracellular protein, naturally occurring in human serum and can be designed to address a broad range of diseases.
BMS's CEO Jim Cornelius expressed his satisfaction with the agreement by saying," biologics are one cornerstone of our growth strategy." BMS's Chief Scientific Officer Elliott Sigal said that Adnectins and the PROfusion technology are among the most exciting next-generation biologics platforms currently in development. Adnexus's leading drug candidate, Angiocept (CT-322) is in Phase I clinical development in oncology in the United States. In August 2007, Adnexus filed for an Initial Public Offering (IPO) worth at least US$86 million.
Outlook and Implications
The purchase is significant for BMS, because it gives the company a rare opportunity to control of a whole new therapeutic class (adnectins) with immense therapeutic potential. The move is part of BMS's key objective of growing its biologics business and an extension of the collaborative agreement signed in February 2007 with Adnexus Therapeutics (see United States: 27 February 2007: BMS, Adnexus Announce Oncology Agreement).
The deal struck between the two companies envisages up to six oncology targets using the PROfusion technology. Adnexus decided that it could advance its adnectin class through a single "established infrastructure", rather than through multiple partnerships. An additional advantage for BMS is the fact that Adnexus solely owns the adnectin patent estate, containing issued and pending patent properties and the PROfusion technology. Adnectins are not bound by traditional antibody patents. BMS already has two biological products on the market: Orencia (abatacept), a product to treat rheumatoid arthritis; and Erbitux (cetuximab), a drug for colon cancer developed by BMS's partner ImClone. The firm also has three other biologic drugs in clinical studies: Ipilimumab, developed by BMS's partner Mederex, is being tested in a Phase III study for the treatment of melanoma. Belatacept is being tested in a Phase III study as an agent for use in patients receiving solid-organ transplantations. The company is also testing an agonistic anti-CD137 monoclonal antibody in a Phase I study. The most advanced adnectin in terms of research is Angiocept (CT-322), which is currently in a Phase I clinical trial in oncology.