Dainippon Sumitomo to acquire Boston Biomedical

Japanese drugmaker Dainippon Sumitomo Pharma (4506: JP) says it has reached an agreement for the acquisition of privately-held US biotech firm Boston Biomedical Inc, headquartered in Norwood, Massachusetts.

Under the terms of the accord, Dainippon Sumitomo will make an upfront payment of $200 million to the shareholders of BBI and BBI on closing of the acquisition and thereafter it will make development milestone payments of up to $540 million related to the two potential anticancer compounds (BBI608 and BBI503) currently being developed by BBI.Furthermore, after the launch of these products, Dainippon will also make milestone payments up to $1.89 billion, based on the achievement of various net sales targets with the last milestone being paid on net sales of greater than $4 billion in any fiscal year. Dainippon says it currently aims to commercialize BBI608 and BBI503 in 2015 or later.

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