The Medicines Company in over $105 million deal with Bristol-Myers for Recothrom; buys Incline Thera

Pharma major Bristol-Myers Squibb (NYSE: BMY) and fellow-USA-based The Medicines Company (Nasdaq: MDCO) have signed a global license and two year collaboration for Recothrom (thrombin alfa), a recombinant thrombin approved by the US Food and Drug Administration (The Pharma Letter January 28, 2008) for use as a topical hemostat to control non-arterial bleeding during surgical procedures.

Under terms of the deal, TMC will pay B-MS an upfront collaboration payment of $105 million and an upfront option fee of $10 million. TMC has also agreed to pay the drug major a tiered royalty on annual net revenues of Recothrom during the two-year collaboration term. B-MS will retain responsibility for the manufacturing of Recothrom and will be TMC’s exclusive supplier of Recothrom during the term of the agreement. The option enables TMC to acquire the Recothrom assets for a purchase price based on average net sales during the two-year collaboration term.

Deal leverages TMC’s emerging perioperative care portfolio