Bristol-Myers To Buy Cardioxyl Pharmaceuticals

Bristol-Myers Squibb Co. said Monday it has agreed to acquire private biotech company Cardioxyl Pharmaceuticals Inc. for up to $300 million in upfront payments and up to $1.775 billion in milestone payments if certain goals are realized.

Cardioxyl is specialized in treatments for cardiovascular disease. The deal is expected to cut 2015 GAAP earnings per share by about 12 cents. "The acquisition of Cardioxyl strengthens Bristol-Myers Squibb's heart failure pipeline with a Phase 2 asset that has the potential to change the course of the disease rather than simply treating the symptoms," Bristol-Myers Chief Scientific Officer Francis Cuss said in a statement.

The company expects the deal to close in the fourth quarter. Shares were not yet active in premarket trade, but are up 11% in the year so far, while the S&P 500 has gained 1%.

By Ciara Linnane Published November 02, 2015

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Source: http://www.foxbusiness.com/