Firms will develop and commercialize a Phase III and Phase II compound with potential payment of up to $950 million.

Bristol-Myers Squibb (BMS) and AstraZeneca agreed to develop and commercialize two investigational compounds discovered by BMS for the treatment of type 2 diabetes.

Saxagliptin, a dipeptidyl peptidase-4 (DPP-4) inhibitor, is currently in a Phase III trial. Upon successful completion of the development program, the companies plan to file for U.S. regulatory approval during the first half of 2008. Dapagliflozin, a sodium-glucose cotransporter-2 (SGLT2) inhibitor, is currently in a Phase IIb trial.

The agreement includes an upfront payment of $100 million to BMS and additional payments of up to $650 million based on development and regulatory milestones. Potential sales milestones up to $300 million per product are also possible.
From 2007 through 2009, the majority of development costs will be funded by AstraZeneca. Any additional development costs will be shared equally.

The companies will jointly develop the clinical and marketing strategy of the compounds and postlaunch, will share commercialization expenses and profits/losses equally on a global basis, excluding Japan. Should either party develop additional DPP-4 or SGLT2 compounds, the other company can elect to add those compounds to the collaboration. BMS will manufacture both products and book sales.

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