Bristol-Myers Squibb will acquire Kosan Biosciences, a cancer therapeutics company, for approximately $190 million in cash. The acquisition adds two classes of anticancer agents to BMS’s pipeline, novel Hsp90 (heat shock protein 90) inhibitors and epothilones.
   
“Helping patients prevail against serious disease is paramount at Bristol-Myers Squibb,” said Jim Cornelius, BMS’ chairman and chief executive officer. “We pursue innovative science, both internally and externally, that can accelerate the discovery and development of new medicines. Kosan’s technology, coupled with our development and commercialization capabilities, will result in new treatment options for patients, and represents another important milestone in the execution of our strategy to become a next-generation BioPharma leader.”
   
Helen S. Kim, Kosan’s president and chief executive officer, remarked, “Kosan has evolved from a research platform to a development company, and we have reached a turning point in our growth as an independent company. We believe that this transaction represents a timely opportunity to place our clinical programs and technology assets in the hands of a world-class company with the experience and expertise to bring innovative cancer treatment options to patients in need.”
   
The two companies have also entered into a separate license agreement under which BMS has an exclusive worldwide license to Kosan’s epothilone compounds and related intellectual property and has been assigned its epothilone IND applications. Under the license agreement, Kosan will receive an initial payment of $25 million and is entitled to milestone payments related to the development of epothilone product candidates and royalty payments on sales of such products.