Dainippon Sumitomo Pharma (DSP) is set to acquire biotechnology company Boston Biomedical Inc. (BBI), a specialist in drugs targeting cancer stem cells.
The Japanese company will pay $200m for BBI up front, with development milestone payments of up to US$540m on two new drugs (BBI608 and BBI503) and commercial milestone payments of up to $1.89bn based on sales.
BBI will become a 100% owned subsidiary of DSP and continue its operation in Massachusetts, US.
DSP aims to commercialise BBI608 and BBI503 in 2015 or later. The two new oral drug candidates are potentially the first anticancer drugs to target cancer stem cells, with the potential to treat refractory, recurrent and metastatic cancers.
BBI608 is currently entering a phase III clinical trial for colorectal cancer and is in phase Ib and II clinical trials for solid tumours. BBI503 is in a phase I clinical trial for advanced solid tumours.
The two companies’ relationship began in March 20011, when DSP signed an exclusive Product Option License agreement with BBI to develop and commercialise BBI608 in Japan for treatment of all types of cancer.
DSP plans to develop its pipeline for novel cancer therapies emerging from current biotechnology R&D.
Masayo Tada, President and CEO of DSP, said: “Acquisition of BBI is not only an acquisition of an innovative pipeline in the oncology area, it also represents obtaining an excellent drug discovery/development platform with the capabilities of BBI, enabling us to continuously create candidate compounds likely to advance into later development stages.
“Subsequently we intend to establish our R&D base in the US to expand our presence in cancer treatment globally.”
The acquisition is expected to close, following completion of antitrust procedures, in April 2012.