Bristol-Myers-Squibb announces acquisition deal

Pharmaceutical company Bristol-Myers Squibb (BMS) has agreed a deal that gives it the option of acquiring drug maker F-star Alpha and one of its breast and gastric cancer treatments.

The agreement, announced today (October 28), may see BMS acquire the right to F-star’s FS102, which treats human epidermal growth factor receptor 2 (HER2) type cancer.

The technology, which is ready for phase, provides treatment of breast and gastric cancer among HER2-positive patients who do not respond or become resistant to current therapies.

Under the agreement, BMS will make payments of around $50 million to F-star that include the option to acquire the company in full, as well to assume the rights and licences related to FS102 and a clinical milestone payment after a phase 1 trial begins.

According to BMS, it still has the option to acquire F-star Alpha in its entirety if it decides to commence a phase 2b trial.

The total terms of the deal may reach $475 million.

Francis Cuss, executive vice president and chief scientific officer at BMS, said the agreement was consistent with its R&D strategy to develop promising treatments that address areas of high unmet medical need.

“We look forward to working with F-star and leveraging our broad clinical expertise in oncology to uncover the full potential of FS102,” Cuss added.

John Haurum, chief executive at F-star, said the company was “thrilled”.