Bristol Myers Squibb and Galecto Biotech AB, a biopharmaceutical company based in Copenhagen, Denmark, have formed an agreement that provides Bristol-Myers Squibb the exclusive option to acquire Galecto Biotech AB and gain worldwide rights to its lead asset TD139, an inhaled inhibitor of galectin-3 in Phase I development for the treatment of idiopathic pulmonary fibrosis (IPF) and other pulmonary fibrotic conditions. Total aggregate payments under the agreement have the potential to reach $444 million, which includes the option fee, an option exercise fee, and subsequent clinical and regulatory milestone payments.

Galectin-3 is a protein that binds to carbohydrate structures in the body and that plays a central role in various types of fibrosis. By targeting and inhibiting the protein's binding ability, galectin-3 inhibitors represent a promising approach to treat diseases that exhibit galectin-3 expression such as IPF, a chronic and progressive form of lung disease characterized by the scarring of lung tissue for which there are limited treatment options. TD139 is a highly potent, specific inhibitor of the galactoside-binding pocket of galectin-3 formulated for inhalation, which enables direct targeting of the fibrotic tissue in the lungs, while minimizing systemic exposure.

Bristol-Myers Squibb is developing an early-stage fibrosis portfolio that includes BMS-986020, a lysophosphatidic acid 1 (LPA1) receptor antagonist in development for the treatment of IPF.

Under the agreement, 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. The companies have agreed on pre-clinical studies and a Phase 1 development plan that will be executed by Galecto AB during the option period.

Galecto Biotech is focused on developing novel drugs for the treatment of fibrosis, inflammation, and other serious human diseases. The company's products target galectins or galactoside-binding lectins, which are a group of proteins shown to be involved in many disease processes. The company is funded by Novo Seeds, MS Ventures, Sunstone Capital, and SEED Capital. MS Ventures is the strategic, corporate venture arm of the biopharmaceutical division of Merck KGaA, Darmstadt, Germany.

Source: Bristol-Myers Squibb