Bristol-Myers Squibb agrees option to acquire Galecto Biotech AB

Bristol-Myers Squibb has negotiated an exclusive option to acquire Galecto Biotech AB, a Danish company focused on developing treatments for fibrosis, inflammation and other serious diseases.

Total aggregate payments under the agreement have the potential to reach $444 million (277.48 million pounds), which includes the option fee, an option exercise fee and subsequent clinical and regulatory milestone payments.

The deal will also see Bristol-Myers Squibb gain worldwide rights to its lead asset TD139, a novel inhaled inhibitor of galectin-3 that is currently in phase I development for the treatment of idiopathic pulmonary fibrosis and other pulmonary fibrotic conditions.

Bristol-Myers Squibb can exercise the option to acquire Galecto at any time following the execution of the transaction agreement, but no later than 60 days following completion of the phase Ib trial of TD139.

Francis Cuss, executive vice-president and chief scientific officer at Bristol-Myers Squibb, said: "TD139 provides Bristol-Myers Squibb an opportunity to advance the company's fibrosis development program with the addition of a promising compound that has the potential to modulate multiple disease pathways."

This comes after the firm also recently negotiated an exclusive option to acquire F-star Alpha, plus rights to a new breast and gastric cancer therapy.