Bristol-Myers Squibb inked an agreement for the development and commercialization of KAI Pharmaceuticals’ inhibitor of the delta protein kinase C pathway, KAI-9803, which is designed to reduce the size of the heart attack and to improve clinical outcomes during treatment of acute myocardial infarction. KAI-9803 is expected to enter Phase IIb testing by the end of 2008 in patients with ST elevation myocardial infarction.
KAI will receive an upfront cash payment of $25 million. Bristol-Myers Squibb will fund all future development including the Phase IIb trial to be conducted by KAI. In addition, at KAI’s option, Bristol-Myers Squibb will purchase $10 million of KAI stock at the time of a qualified IPO or under other specified future conditions.
KAI may receive from Bristol-Myers Squibb up to $192 million in milestone payments based on the achievement of prespecified development and regulatory milestones for KAI-9803. KAI could be eligible for additional milestones if other compounds are developed. The company will also have an option to copromote KAI-9803 in the U.S. and will receive royalty payments on the products net sales worldwide.