Bristol-Myers Squibb has agreed to acquire Padlock Therapeutics, Inc. a privately held, Cambridge, Massachusetts-based biotechnology company focused on developing treatments for autoimmune diseases. The transaction includes upfront and near-term contingent milestone payments of up to $225 million and additional contingent consideration of up to $375 million upon the achievement by Bristol-Myers Squibb of certain development and regulatory events. The transaction has been approved by the boards of directors of both companies and by the stockholders of Padlock. Bristol-Myers Squibb and Padlock anticipate the transaction will close during the second quarter of 2016.

The acquisition will give Bristol-Myers Squibb full rights to Padlock's Protein/Peptidyl Arginine Deiminase (PAD) inhibitor discovery program focused on the development of treatments for patients with rheumatoid arthritis (RA). Padlock's PAD discovery program may have additional utility in treating systemic lupus erythematosus (SLE) and other autoimmune diseases.

PADs are a family of enzymes that produce autoantigens which play an active role in the development and progression of RA and other autoimmune diseases. Inhibiting PADs offers the potential to prevent progression of autoimmune diseases early in their evolution. In identifiable high risk patients with pre- and early-RA, PAD inhibition could lead to a shift in treatment by preventing disease development and resulting joint destruction. PAD4 inhibition in combination with current standard of care therapies may increase and maintain the durable remission rates in RA patients with rapidly progressive disease, according to information from Bristol-Myers Squibb.

Source: Bristol-Myers Squibb