Dainippon Sumitomo Pharma to Snag Boston Biomedical for $200M
DSP will pay $540 million in development milestones and $1.89 billion in sales milestones.!--h2>
Dainippon Sumitomo Pharma (DSP) is offering $200 million up front to take over Boston Biomedical (BBI) and promises another $2.43 billion in if milestones are met for developing and selling two cancer candidates, BBI608 and BBI503. DSP will pay up to $540 million based on success with clinical trials of these compounds. The bulk of the milestone fees, $1.89 billion, is attributed to achieving various net sales targets; the last milestone would be paid if sales top $4 billion in any fiscal year.
DSP currently aims to commercialize BBI608 and BBI503 in 2015 or later. These candidates are small molecule oral drugs created with the aim to cause an antitumor effect in cancer stem cells. BBI608 is currently in the preparatory stage for a Phase III trial in colorectal cancer in North America and in Phase Ib and II trials for various solid tumors. BBI503 is in a Phase I trial in North America involving patients with various advanced solid tumors.
DSP previously signed an exclusive product option license agreement with BBI in March 2011 on the rights of development and commercialization of BBI608 in Japan for all cancer indications. “Acquisition of BBI is not only an acquisition of an innovative pipeline in the oncology area, it also represents obtaining an excellent drug discovery and development platform with the capabilities of BBI, enabling us to continuously create candidate compounds likely to advance into later development stages,” says Masayo Tada, representative director, president and CEO of DSP.
“Subsequently we intend to establish our R&D base in the U.S. to expand our presence in cancer treatment globally. We are aiming to make the oncology area one of our future focus therapeutic areas next to the CNS area.” After the acquisition, BBI is expected to continue its operation in the Boston area. The companies anticipate the acquisition closing in April.