Japan's Dainippon Sumitomo to acquire Boston Biomedical for $200 mn
01 Mar 2012
Japan's Dainippon Sumitomo Pharma Co yesterday said that it is acquiring US-based Boston Biomedical Inc, for $200 million to get hold of a compound that has the potential to become the world's first drug to target cancer stem cells.
The importance of the deal can be gauged from the Osaka-based company's agreement to pay $540 million in milestone payments for the compounds that are currently in development stage.
The compounds, known as BBI608 and BBI503, are likely to become the first anti-cancer drugs in the world targeting cancer stem cells.
Dainippon Sumitomo may also make another milestone payment of up to $1.89 billion, if annual sales of these compounds cross the $4 billion threshold. The compounds are scheduled to be commercialised in 2015 or later.
BBI608 is being prepared for Phase III clinical trials for colorectal cancer in North America and is in Phase I and II trials for various solid tumors. BBI503 is in Phase I trials for various advanced solid tumors, Dainippon said in a statement.
In April 2011, Dainippon Sumitomo had signed an exclusive product option license agreement with Boston Biomedical on the rights of development and commercialisation of BBI608 in Japan for all cancer indications.