Updated on 13 December 2012
The Medicines Company will pay Bristol-Myers Squibb $115 million and tiered royalty on annual net revenues for recombinant thrombin Recothrom
Singapore: US-based medical solution provider, The Medicines Company, and Bristol-Myers Squibb have signed a global license and two year collaboration for Recothrom, a recombinant thrombin approved by the US FDA for use as a topical hemostat to control non-arterial bleeding during surgical procedures.
Under terms of the agreement, The Medicines Company will pay Bristol-Myers Squibb an upfront collaboration payment of $105 million and an upfront option fee of $10 million. The Medicines Company has also agreed to pay Bristol-Myers Squibb a tiered royalty on annual net revenues of Recothrom during the two-year collaboration term.
Bristol-Myers Squibb will retain responsibility for the manufacturing of Recothrom and will be The Medicine Company's exclusive supplier of Recothrom during the term of the agreement. The option enables The Medicines Company to acquire the Recothrom assets for a purchase price based on average net sales during the two-year collaboration term.
Dr Clive Meanwell, chairman and CEO, The Medicines Company, said, "As a marketed, growing product to control blood loss in the hospital, we believe Recothrom is a strategic fit that enables operating leverage with The Medicines Company's emerging perioperative care portfolio. The financial structures and net revenues fit well with our strategy for aggressive and sustainable growth in acute and intensive care medicine. Of course, thrombin is also a hemodynamic target we know well based on our experience with Angiomax (bivalirudin), a thrombin inhibitor."
Dr Giovanni Caforio, president, US pharmaceuticals, Bristol-Myers Squibb, said that, "This agreement is part of Bristol-Myers Squibb's ongoing efforts to simplify operations, improve our efficiency and better position ourselves to focus on our important work in areas of significant unmet medical need that are critical to our long-term success."