BMS to acquire Padlock Therapeutics

Gains full-rights to Padlock’s Protein/Peptidyl Arginine Deiminase (PAD) inhibitor discovery program.

PADs are a family of enzymes that produce autoantigens, which play an active role in the development and progression of RA and other autoimmune diseases. Inhibiting PADs offers the potential to prevent progression of autoimmune diseases early in their evolution. In identifiable high risk patients with pre- and early-RA, PAD inhibition could lead to a paradigm shift in treatment by preventing disease development and resulting joint destruction. PAD4 inhibition in combination with current standard of care therapies may increase and maintain the durable remission rates in RA patients with rapidly progressive disease.

“Targeting PAD enzymes has the potential to be one of the most innovative mechanisms for treating autoimmunity which both strengthens and accelerates our immunoscience pipeline,” said Francis Cuss, executive vice president and chief scientific officer, BMS. “By pursuing a treatment approach which may address disease progression earlier, we hope to transform the lives of patients with RA and other autoimmune diseases.”

“By targeting PADs, it may be possible to eliminate the antigens that drive autoimmunity with limited impact on the immune system, thereby creating breakthrough treatments,” said Michael Gilman, founder and chief executive officer, Padlock Therapeutics. “In BMS, we found an excellent home for our program based on their deep commitment to science and developing transformational therapies. We are confident that BMS can leverage the scientific foundation built by Padlock's founders, team, and advisors to help patients with serious autoimmune diseases.”

BMS is building on learnings from extensive clinical and patient experience in immunoscience to seek entirely new mechanisms that are both innovative and differentiated not only for RA, but other immune-system disorders where significant unmet medical need remains. The company has a strong early clinical and discovery immunoscience pipeline which includes several novel compounds that offer first-in-class and a best-in-disease opportunities targeting long-term remission.

The transaction includes upfront and near term contingent milestone payments of up to $225 million and additional contingent consideration of up to $375 million upon the achievement by BMS of certain development and regulatory events. The transaction has been approved by the boards of directors of both companies and by the stockholders of Padlock. BMS and Padlock anticipate the transaction will close during the second quarter of 2016.