Bristol-Myers enters option deal to acquire F-star Alpha and FS102

US pharma major Bristol-Myers Squibb (NYSE: BMY) has entered into an agreement that provides it with the exclusive option to acquire UK-based F-star Alpha Ltd, and gain worldwide rights to its lead asset, FS102.

FS102 is a novel Phase I ready Human Epidermal growth factor Receptor 2 (HER2)-targeted therapy in development for the treatment of breast and gastric cancer among a well-defined population of HER2-positive patients who do not respond or become resistant to current therapies.

Under the terms of the agreement, B-MS will make payments aggregating to $50 million that consist of an option fee for the right to acquire F-star Alpha, payment for certain rights and licenses from F-star Alpha Ltd. and a clinical milestone payment upon initiation of the Phase I trial. B-MS will be responsible for conducting and funding development of FS102 during the option period. B-MS can exercise the option to acquire F-star Alpha in its sole discretion upon its decision to commence a Phase IIb trial.