Date: Mar 01, 2012 Author: Patricia Resende Source: Mass High Tech
Drug discovery company Boston Biomedical Inc. announced today that it will be acquired by Japan-based Dainippon Sumitomo Pharma Co., Ltd. for up to $2.63 billion. DSP will pay $200 million upfront, $540 million in development milestone payments and up to $1.89 billion in sales milestone payments. The boards of directors of both companies unanimously approved the deal.
The Norwood-based company has a pipeline of drug candidates that target cancer stem cells including BBI608 and BBI503. The orally-administered BBI608 is ready for Phase 3 trials for colorectal cancer in North America and Phase1b and Phase 2 trials for multiple solid tumors. BBI608 targets both highly malignant cancer stem cells as well as heterogeneous cancer cells.
Boston Biomedical Chairman and CEO Chiang J. Li said in a statement that the deal was a “strategic transaction” that will be the best path to bring its cancer stemness inhibitors to patients.
The acquisition comes less than a year after Boston Biomedical signed a $15 million licensing deal with DSP for BBI608.
Once the acquisition is complete, Boston Biomedical will become a fully-owned subsidiary of DSP. Operations will continue in the Boston area, according to the company. The acquisition is scheduled to be completed in April.
