Bristol-Myers Squibb to acquire Galecto Biotech
Bristol-Myers Squibb Company and Galecto Biotech AB, together with the Galecto shareholders, have entered into an agreement that provides Bristol-Myers Squibb the exclusive option to acquire Galecto Biotech AB and gain worldwide rights to its lead asset TD139, a substance for the treatment of pulmonary fibrotic conditions. Total aggregate payments under the agreement have the potential to reach USD 444 million, which includes the option fee, an option exercise fee and subsequent clinical and regulatory milestone payments.
Galecto Biotech is focused on developing novel drugs for the treatment of fibrosis, inflammation and other serious human diseases. Galecto Biotech is funded by, among others, Novo Seeds, MS Ventures (the corporate venture arm of the biopharmaceutical division of Merck KGaA), Sunstone Capital and SEED Capital. Galecto Biotech is located in Copenhagen, Denmark, with close proximity to the founders’ research groups.
Bristol-Myers Squibb is a global biopharmaceutical company with headquarters in New York City. The company had net sales of USD 16.4 billion in 2013 and the group’s share is listed on NYSE.
Bristol-Myers Squibb was advised by Mannheimer Swartling in the transaction. The firm’s team consisted primarily of Mattias Karlsson, Terese Holmqvist, Viktor Leisnert, Filip Lodding and Hanna Walukiewicz (Mergers & Acquisitions) Anders Erasmie and Niklas Hagbard (Corporate Taxation), Tobias Normann (Employments & Pensions) and Emil Albihn Henriksson (Intellectual Property, Marketing & Media). Kirkland & Ellis LLP, New York acted as lead counsel in the matter.