ViiV Healthcare to acquire Bristol-Myers Squibb’s HIV pipeline drugs
pharmafile | December 18, 2015 | News story | Medical Communications, Research and Development, Sales and Marketing | BMS, Bristol-Myers Squibb, HIV, ViiV, ViiV Healthcare
Specialist HIV company ViiV Healthcare has agreed deals worth up to $1.46 billion to purchase Bristol-Myers Squibb’s late stage HIV R&D assets, and its HIV portfolio of pre-clinical and discovery stage research assets.
The late-stage asset purchase comprises an upfront payment of $317 million, followed by development and first commercial sale milestones of up to $518 million, and tiered royalties on sales. The purchase of preclinical and discovery stage research assets comprises an upfront payment of $33 million, followed by development and first commercial sales milestones of up to $587 million, and further payments contingent on future sales of the pipeline drugs.
The late stage R&D assets include an attachment inhibitor (BMS-663068) investigated in Phase III trials as a breakthrough therapy candidate for heavily treatment-experienced patients. Of the other two, one (BMS-955176) is in Phase IIb research for treatment-naive and treatment-experienced patients, with the second (BMS-986173) being a back-up candidate.
The Bristol-Myers Squibb HIV discovery programmes include a novel biologic treatment with a triple mechanism of action (BMS-986197). As part of the agreement, a number of Bristol-Myers Squibb drug discovery employees will be offered the opportunity to transfer to ViiV.
ViiV, which is part-owned by GSK, Pfizer and the Japanese firm Shionogi, said the acquisition would strengthen its long-term growth and sustainability, by complementing its current portfolio of existing and investigational treatments. In addition, the company said the late stage assets would provide novel mode of action medicines which would be first to market in their class, if approved.
“With these two deals, we are delighted to acquire these promising and pioneering research programmes. We look forward to developing them with the aim of bringing new treatment options to people living with HIV,” says Dominique Limet, chief executive, ViiV Healthcare. “These transactions strengthen our continued growth as a business and our R&D leadership and expertise.”
BMS says the transactions support its strategic focus, including the decision to discontinue its discovery efforts in virology announced in June. The company’s chief scientific officer, Francis Cuss, comments: “Bristol-Myers Squibb has been committed to the HIV community for almost three decades, contributing significantly to the science and to the transformation in the treatment of this disease.
“Given the remaining unmet medical needs in HIV, Bristol-Myers Squibb continued its discovery of novel treatment approaches and the agreements with ViiV Healthcare now put the development of these potentially first-in-class compounds into the hands of a global specialist company exclusively dedicated to finding new medicines for people living with HIV.”
Both of the separate deals are subject to clearance by the regulatory authorities and are expected to complete in early 2016.
ViiV was established in November 2009 by GlaxoSmithKline and Pfizer dedicated to delivering advances in treatment and care for people living with HIV. Shionogi joined in October 2012, receiving a 10% equity stake. Today, GSK owns 76.5% of the company, and Pfizer 13.5%.
Joel Levy
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