Target: Boston Biomedical
Buyer: Dainippon Sumitomo Pharma
Price: $2.6 billion
Closed: April 25, 2012
In another biotech deal, Dainippon Sumitomo Pharma offered a package totaling $2.6 billion to get its hands on Boston Biomedical and its two promising anti-cancer drugs that target cancer stem cells. The two had struck a partnership over development of BBI608 in 2011 before the Japanese company decided that it wanted to own it. While several companies are working in this area, Boston Biomedical has said its candidates have the chance to be the first drugs in the world to target cancer stem cells, which have the capability of dodging chemotherapy and then evolving into tumor cells. The drugs are being studied for use against colorectal cancer and various solid tumors.
The structure of the deal is that Boston got $200 million upfront, $540 million in development milestones and about $1.9 million in commercial milestones if the drugs pan out to megablockbuster status. Dainippon decided to keep Boston Biomedical separate rather than fold it into its own operations.
Special Report: BBI608 – Top 10 Late-Stage Cancer Drugs – 2012