Bristol-Myers Squibb has agreed to acquire Cardioxyl, a private biotechnology company focused on the discovery and development of therapeutic agents for treating cardiovascular disease. The acquisition will give Bristol-Myers Squibb full rights to Cardioxyl's lead asset CXL-1427, a nitroxyl (HNO) donor (prodrug) in Phase II clinical development as an intravenous treatment for acute decompensated heart failure (ADHF). The transaction includes upfront and near-term milestone payments of up to $300 million and potential additional consideration of up to $1.775 billion upon the achievement of certain development, regulatory, and sales milestones. The transaction has been approved by the boards of directors of both companies and is expected to close in the fourth quarter of 2015, subject to customary closing conditions and antitrust approval.

CXL-1427 releases nitroxyl, a molecule that has demonstrated beneficial effects on heart muscle and vascular function. Pre-clinical and early clinical data indicate that CXL-1427 improves how the heart muscle contracts and relaxes without increasing heart rate or the demand for oxygen. Current therapies for ADHF that improve heart muscle function produce an increase in heart rate and/or oxygen consumption and are associated with an increased risk for ischemia, arrhythmias and increased mortality, according to information from Bristol-Myers Squibb.

Source: Bristol-Myers Squibb