ViiV Healthcare, the global specialist HIV company majority owned by GlaxoSmithKline (GSK) with Pfizer Inc. and Shionogi Limited as shareholders, has completed two previously announced transactions with Bristol-Myers Squibb (BMS) to acquire BMS’s late-stage HIV R&D assets and its portfolio of preclinical and discovery-stage HIV research assets. The completion of both transactions follows antitrust approval by the relevant regulatory authorities in the US, with the integration process beginning immediately.

Under the terms of the transactions, ViiV Healthcare acquired late-stage HIV R&D assets from Bristol-Myers Squibb for an initial upfront payment of $317 million followed by development and first commercial sale milestones of up to $518 million, and tiered royalties on sales. ViiV Healthcare also acquired Bristol-Myers Squibb's preclinical and discovery stage HIV research business for an upfront payment of $33 million, followed by development and first commercial sales milestones of up to $587 million, and further consideration contingent on future sales performance. ViiV Healthcare will pay sales-based milestone payments of up to $750 million for each of the clinical assets and up to $700 million for each of the discovery and pre-clinical programs.

The late-stage assets acquired by ViiV Healthcare include ostemsavir (BMS-663068), an attachment inhibitor currently in Phase III development for heavily treatment experienced patients. Fostemsavir has received a breakthrough therapy designation from the US Food and Drug Administration and is expected to be filed for regulatory approval in 2018. The second late-stage asset is a maturation inhibitor (BMS-955176), which is currently in Phase IIb development for both treatment-naive and treatment experienced patients. A back-up maturation inhibitor candidate (BMS-986173) is also included in the purchase. Assets in preclinical and discovery phases of development include a biologic (BMS-986197) with a triple mechanism of action, an additional maturation inhibitor, an allosteric integrase inhibitor and a capsid inhibitor.

ViiV Healthcare was established in November 2009 by GSK and Pfizer. Shionogi joined in October 2012.

The agreements with ViiV Healthcare do not impact Bristol-Myers Squibb's marketed HIV medicines, including Reyataz, Evotaz, Sustiva and Atripla.

Source: GlaxoSmithKline and Bristol-Myers Squibb