Bristol-Myers, The Medicines join forces for Recothrom

Recothrom is a recombinant thrombin approved by the US FDA for use as a topical hemostat to control non-arterial bleeding during surgical procedures.

The Medicines Company chairman and CEO Clive Meanwell said, "As a marketed, growing product to control blood loss in the hospital, we believe Recothrom is a strategic fit that enables operating leverage with The Medicines Company’s emerging perioperative care portfolio.”

Bristol-Myers Squibb US Pharmaceuticals president Giovanni Caforio said, "This agreement is part of Bristol-Myers Squibb’s ongoing efforts to simplify operations, improve our efficiency and better position ourselves to focus on our important work in areas of significant unmet medical need that are critical to our long-term success."

As part of the agreement, The Medicines Company will make Bristol-Myers Squibb $105m upfront collaboration payment and an upfront option fee of $10m as well as a tiered royalty on annual net revenues of Recothrom during the two-year collaboration period.

Bristol-Myers Squibb will also manufacture Recothrom and act as exclusive supplier to The Medicine Company’s during the agreement term.

The transaction, which is expected to be minimally accretive to EPS for Bristol-Myers Squibb in 2013 and 2014, is subject to the satisfaction or waiver of closing conditions and the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Currently the product is commercially available in the US and Canada.