Galecto’s TD139 is currently in Phase I development and is designed to treat idiopathic pulmonary fibrosis (IPF) and other pulmonary fibrotic conditions.
TD139 is a highly potent, specific inhibitor of the galactoside-binding pocket of galectin-3 formulated for inhalation, which allows direct targeting of the fibrotic tissue in the lungs, while reducing systemic exposure.
Galectin-3 is a protein which binds to carbohydrate structures in the body and plays a key role in different fibrosis.
Bristol-Myers Squibb executive vice-president and chief scientific officer Francis Cuss said: "Delivering innovative medicines that halt or slow the progression of fibrotic diseases is a key part of our R&D strategy to build a sustainable pipeline.
"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."
Payments under the deal could reach $444m, which includes the option fee, an option exercise fee and subsequent clinical and regulatory milestone payments.
As part of the deal, BMS can exercise the option to buy Galecto no later than 60 days after it completes the Phase Ib trial for the treatment.
The two firms have also agreed on pre-clinical studies and a Phase I development plan that will be executed by Galecto during the option period.