Bristol-Myers buys rights to fibrosis drug with option to buy developer Promedior

Bristol-Myers Squibb Co. is paying up to $1.25 billion for the rights to a developing fibrosis drug in a deal that also gives it the right buy drug developer Promedior Inc.

Bristol-Myers will buy worldwide rights to drug candidate PRM-151, currently in midstage development as a treatment for the lung condition idiopathic pulmonary fibrosis and bone marrow disorder myelofibrosis. The drug candidate has already been granted special FDA designations allowing for speedier development and a faster review process.

Under the terms of the deal, Bristol-Myers Squibb will make an upfront payment of $150 million as consideration to buy rights to the drug candidate and Promedior. Total payments could reach up to $1.25 billion and Bristol-Myers can exercise its right to buy Promedior upon completion of future clinical trials.