BMS, ASTRAZENECA ENTER INTO MULTIMILLION-DOLLAR DEAL

Bristol-Myers Squibb (BMS) and AstraZeneca have announced a collaboration to develop and commercialize two investigational compounds being studied for the treatment of Type 2 diabetes. Both compounds were discovered by U.S.-based BMS.

Saxagliptin, a dipeptidyl peptidase-4 (DPP-4) inhibitor, is currently in Phase III development. Upon successful completion of the development program, the companies plan to file for U.S. regulatory approval of saxagliptin during the first half of 2008. Dapagliflozin, a sodium-glucose cotransporter-2 (SGLT2) inhibitor, is currently in Phase IIb development. The collaboration on these compounds is worldwide, except for Japan. Should either party develop additional DPP-4 or SGLT2 compounds, the other company can elect to add those compounds to the collaboration.

Terms of the agreements include an upfront payment of $100 million by AstraZeneca to BMS. The companies have agreed on initial development plans for the two compounds. From 2007 through 2009, the majority of development costs will be paid by AstraZeneca. Any additional development costs will be shared equally.

BMS may also receive additional payments of up to $650 million based on development and regulatory milestones for the two compounds. In addition, potential sales milestones up to $300 million per product are also possible. The companies will jointly develop the clinical and marketing strategy of the compounds and will share commercialization expenses and profits/losses equally on a global basis, excluding Japan. BMS will manufacture both products and book sales.