Bristol-Myers Squibb (NYSE:BMY) is extending a drug discovery and development agreement with Tranzyme Pharma (NASDAQ:TZYM) to buy more time to continue the search for new drug candidates.
Durham, North Carolina-based Tranzyme is entitled to up to $80 million in milestone payments for each drug program that results from the collaboration that is now set to expire in June 2012. In the meantime, Bristol-Myers is paying an unspecificed amount to fund Tranzyme’s drug discovery research in the partnership.
The funding in the extension will be under the same terms and conditions as under the existing partnership. Tranzyme is also entitled to the same milestone payments set in the original agreement.
Bristol-Myers Squibb and Tranzyme entered a two-year research collaboration in December 2009 that called for Tranzyme to use its proprietary technology to discover new drugs. Once lead compounds are identified, the agreement calls for Bristol-Myers to complete preclinical and clinical development of all products from the collaboration.
Tranzyme is in the midst of clinical studies of its own drug candidates. Ulimorelin is in phase 3 studies to restore gastrointestinal function following GI surgery. Another compound, TZP-102, is entering phase 2b studies as a diabetic gastroparesis treatment.
While Tranzyme has focused its own drug development efforts on compounds treating gastrointestinal disorders, the company’s proprietary drug discovery technology has applications in multiple therapeutic areas.
