Bristol-Myers Squibb Co. said Monday that it has been granted the exclusive right to buy privately held Promedior Inc. and its experimental fibrosis treatment for up to $1.25 billion.
Under the terms of the agreement, Bristol-Myers will pay $150 million in cash up front for the right to buy Promedior. Bristol-Myers can exercise that right after Promedior completes either of two phase-two trials for the treatment PRM-151.
Promedior expects to begin clinical trials of the treatment for idiopathic pulmonary fibrosis and myelofibrosis patients in the coming weeks. PRM-151 has been granted fast-track designation and orphan designation.
Fibrosis is associated with several rare diseases and illnesses such as age-related macular degeneration and solid tumors. Fibrosis occurs when healthy tissue is replaced with scar tissue, which can compromise function and lead to organ failure.
Bristol-Myers said the drug will complement its early-stage fibrosis portfolio. The company last year signed an option agreement to buy Galecto Biotech AB, a company with an inhaled inhibitor for the treatment of idiopathic pulmonary fibrosis.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com