By a News Reporter-Staff News Editor at Biotech Week -- Bristol-Myers Squibb Company (NYSE:BMY) and iPierian, Inc. announced that Bristol-Myers Squibb has acquired iPierian, a privately held biotechnology company focused on the discovery and development of new treatments for Tauopathies, a class of neurodegenerative diseases associated with the pathological aggregation of Tau protein in the human brain (see also Pharmaceutical Companies).
The acquisition gives Bristol-Myers Squibb full rights to iPierian's lead asset IPN007, an innovative preclinical monoclonal antibody that represents a promising new approach to treat progressive supranuclear palsy (PSP) and other Tauopathies, and has the potential to commence Phase 1 clinical trials by early 2015. Genetically defined diseases, such as PSP, are caused by a known change in the genome. Knowledge of this genomic change is then used to design a therapeutic approach aimed precisely at that molecular defect, such as the anti-Tau antibody for PSP.
Under the terms of the agreement, Bristol-Myers Squibb has acquired all of iPierian's issued and outstanding shares of capital stock and all common stock equivalents in an all cash transaction for a purchase price of $175 million, with the potential for additional development and regulatory milestone payments totaling $550 million, along with future royalties on net sales. The transaction is expected to be accounted for as an asset acquisition for Bristol-Myers Squibb resulting in a $175 million charge during the second quarter of 2014.
"As part of our evolution to a diversified specialty BioPharma company, we have identified genetically defined diseases as an area where the company has an opportunity to significantly advance the standard of care for patients with limited treatment options," said Francis Cuss, executive vice president and chief scientific officer, Bristol-Myers Squibb. "The acquisition of iPierian supports our growing efforts in this area and builds on Bristol-Myers Squibb's internal expertise and alliances focused on the Tau pathway and neurodegenerative diseases."
"iPierian's discovery of a novel mechanism of secreted Tau biology was the basis of the IPN007 program," said Dr. Nancy Stagliano, chief executive officer of iPierian. "The Bristol-Myers Squibb acquisition reinforces the importance of this finding and we are gratified that IPN007 is strongly positioned now to potentially offer a new therapeutic option to progressive supranuclear palsy patients."
"In innovative drug discovery related to the Tau pathway, Bristol-Myers Squibb and iPierian are uniquely matched, both strategically and scientifically," said Dr. Peter Van Vlasselaer, executive chairman of iPierian. "Bristol-Myers Squibb's global leadership in Tau biology and antibody development creates an ideal setting to accelerate and fully develop the clinical potential of IPN007."
Keywords for this news article include: Therapeutics, Pre-Trial Research, Biotechnology Companies, Merger and Acquisitions, Biopharmaceutical Companies, Clinical Trials and Studies, Bristol-Myers Squibb Company.
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC