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The
Medicines Company
MDCO and Bristol-Myers Squibb Company
BMY announced today that the companies have signed a global
license and two year collaboration for Recothrom(R), a recombinant
thrombin approved by the U.S. Food and Drug Administration for use as
a topical hemostat to control non-arterial bleeding during surgical
procedures.
Recothrom net revenues in 2011 were $65 million. The product is currently commercially available in the United States and Canada. The
intellectual property license agreement is global and The Medicines
Company anticipates pursuing approvals in additional countries.
The transaction is expected to be accretive to earnings per share
(EPS) for The Medicines Company in 2013.
Under terms of the agreement, The Medicines Company will pay
Bristol-Myers Squibb an upfront collaboration payment of $105 million
and an upfront option fee of $10 million. The Medicines Company has
also agreed to pay Bristol-Myers Squibb a tiered royalty on annual
net revenues of Recothrom during the two-year collaboration term.
Bristol-Myers Squibb will retain responsibility for the manufacturing
of Recothrom and will be The Medicine Company's exclusive supplier of
Recothrom during the term of the agreement. The option enables The
Medicines Company to acquire the Recothrom assets for a purchase
price based on average net sales during the two-year collaboration
term.
The transaction is expected to be minimally accretive to EPS for
Bristol-Myers Squibb in 2013 and 2014.
The transaction is subject to the satisfaction or waiver of closing
conditions, including the expiration or termination of applicable
waiting periods under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended, and the delivery by Bristol-Myers Squibb of
certain audited financial information relating to the business.
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