Bristol-Myers Squibb has set up two individual agreements with ViiV Healthcare to divest its pipeline of investigational HIV drugs at various clinical development stages, under its strategy of winding down virology discovery efforts.
ViiV will pay BMS upfront payments totally $350 million with potential development and regulatory milestone payments of up to $518 million for the clinical assets, and up to $587 million for the discovery and preclinical programs.
Once products are approved and commercialised, ViiV will pay tiered royalties to BMS, as well as sales-based milestones of up to $750 million for each of the clinical assets and up to $700 million for each of the discovery and preclinical programs.
ViiV will manage and resource the acquired development programmed and BMS will continue to provide certain R&D support during a transitional period, at a cost. Around twenty BMS employees are also being offered the opportunity to transfer to ViiV as part of the deal.
The transaction, which does not include any of BMS’ marketed HIV drugs, is expected to complete during the first half of next year, subject to customary closing conditions.