Portfolio News
Bristol-Myers to develop KAI heart-attack drug
Reuters
Lewis Krauskopf
13 May 2008
NEW YORK (Reuters) - Bristol-Myers Squibb Co has struck a deal to develop KAI Pharmaceuticals' experimental medicine for lessening the impact of heart attacks, the companies said on Tuesday.
Bristol-Myers will pay an initial $25 million to the privately held company, and fund future development of the medicine, KAI-9803, which is expected to enter mid-stage Phase 2b clinical testing by the end of the year.
Bristol-Myers also may pay up to $192 million should the medicine reach various developmental and regulatory milestones. Also at KAI's option, Bristol-Myers will buy $10 million of the smaller company's stock at the time of a qualified initial public offering or under other specified future conditions.
By blocking a protein pathway tied to the death of certain cells, KAI-9803 is designed to reduce the size of the heart attack and to improve clinical outcomes during treatment.
In earlier studies of patients undergoing angioplasty for treating heart attacks, those receiving injections of KAI-9803 experienced less damage to heart muscle compared to patients receiving a placebo, the companies said.
Bristol-Myers shares rose 1 cent to $21.64 in morning trade on the New York Stock Exchange.
(Reporting by Lewis Krauskopf, editing by Dave Zimmerman)
