Bristol-Myers Squibb (NYSE:BMY) said Monday that it agreed to acquire privately held Cardioxyl Pharmaceuticals Inc. in a deal that could be valued at as much as $2.07bn.
New York-based Bristol-Myers said in a statement on Monday that it would make an upfront payment of up to $300 mln and potentially add up to $1.775bn pending on the achievement of certain development, regulatory and sales milestones. The transaction is expected to close before year’s end. Bristol-Myers said the deal would be dilutive to this year’s per-share earnings by $0.12. Bristol-Myers aims to gain access to Cardioxyl's CXL-1427, a heart failure treatment. At least 5.1mln Americans suffer from heart failure, for which there is no cure. Bristol-Myers said early clinical data indicate the treatment has improved how the heart contracts and relaxes without increasing heart rate or the demand for oxygen. Shares of Bristol-Myers closed down 2% at $65.95 on Friday, paring gains this year to 12%. Meanwhile, British drugmaker Shire said it would buy the Dyax (NASDAQ:DYAX) for about $5.9bn.