Bristol-Myers Squibb Enters Into Global Agreement With Alder

Published: 10-Nov-2009

For the development and commercialisation of ALD518

Bristol-Myers Squibb and Alder Biopharmaceuticals have entered into a global agreement for the development and commercialisation of ALD518. ALD518 is a novel biologic that has completed Phase IIa development for the treatment of rheumatoid arthritis.

As per the terms of the collaboration agreement, Alder will grant to Bristol-Myers Squibb worldwide exclusive rights to develop and commercialise ALD518 for all potential indications except cancer. Alder will retain rights to drug for cancer indications and grant Bristol-Myers Squibb an option to co-develop and commercialise outside the US.

Bristol-Myers Squibb is expected an upfront cash payment of $85m, potential development-based and regulatory-based milestone payments of up to $764m across a range of indications, potential sales-based milestones which, under certain circumstances, may exceed $200m, and royalties on net sales to Alder.

Whereas, Alder has an option to require Bristol-Myers Squibb to make an equity investment of up to $20m in Alder during an initial public offering.

Brian Daniels, senior vice president of global development and medical affairs at Bristol-Myers Squibb, said: “With its novel mechanism of action, ALD518 has the potential to offer an exciting new option for patients with rheumatoid arthritis. We are pleased to have the opportunity to develop this novel monoclonal antibody. As part of our String of Pearls strategy, this transaction provides Bristol-Myers Squibb with the opportunity to strengthen our immunoscience pipeline, and leverage our company’s experience in developing and delivering novel biologics to help patients prevail over rheumatoid arthritis and, potentially, other autoimmune diseases.”

Randall Schatzman, president and CEO of Alder, said: “Bristol-Myers Squibb and Alder share the vision that ALD518 could become an important part of treating patients with rheumatoid arthritis. Bristol-Myers Squibb’s extensive development and commercial experience in immunology translate into an exceptionally good fit for Alder, especially at this stage of our corporate development.”

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