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news.Bristol-Myers Squibb and Kai Pharmaceuticals have signed an exclusive agreement for the global development and commercialization of KAI-9803, the company's proprietary, first-in-class inhibitor of the delta protein kinase C pathway.
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Under the terms of the collaboration, Kai will receive an upfront cash payment of $25 million. Bristol-Myers Squibb will fund all future development, including the Phase IIb clinical trial to be conducted by Kai. In addition, at Kai’s option, Bristol-Myers Squibb will purchase $10 million of Kai stock at the time of a qualified initial public offering, or under other specified future conditions.
Kai may receive from Bristol-Myers Squibb up to $192 million in milestone payments based on the achievement of pre-specified development and regulatory milestones for KAI-9803. Kai could be eligible for additional milestones if other compounds are developed. Kai will have an option to co-promote KAI-9803 in the US and will receive royalty payments on product net sales worldwide. The closing of the transaction is subject to customary regulatory approvals.
KAI-9803 is designed to reduce the size of the heart attack and to improve clinical outcomes during treatment of acute myocardial infarction. KAI-9803 is expected to enter Phase IIb clinical testing by the end of 2008 in patients with ST elevation myocardial infarction.
Brian Daniels, senior vice president, global development & medical affairs of Bristol-Myers Squibb, said: “This licensing agreement is an example of our company’s strategy to integrate external innovation that enriches our pipeline and contributes to our transformation to a next-generation biopharma leader.”