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Bristol-Myers Squibb (BMS) and KAI Pharmaceuticals, a biotechnology company, entered a pact for the global development and commercialization of KAI- 9803, used in part to help reduce the size of a heart attack.
BMS reported that KAI will receive an upfront cash payment of $25 million.
KAI's drug, KAI-9803, slated for mid-stage clinical testing later this year, is meant to reduce the size of a heart attack and improve the outcome for patients who suffer one.
Under the terms of the agreement, the Princeton, N.J.-based BMS will pay for the rest of the drug’s development, including the upcoming clinical trial being run by San Francisco-based KAI.
In addition, at KAI's option, BMS will purchase $10 million of KAI stock at the time of an initial public offering, or under other specified future conditions. KAI may receive up to $192 million from BMS in milestone payments based on the achievement of pre-specified development and regulatory milestones for KAI-9803, depending on the success of the drug.
KAI will also have an option to co-promote KAI-9803 in the U.S. and will receive royalty payments on product net sales worldwide, according to BMS.