Bristol-Myers Squibb to acquire Padlock Therapeutics with RA, autoimmune pipeline

Bristol-Myers Squibb and Padlock Therapeutics Inc. announced a definitive agreement to transfer all outstanding capital stock in Padlock, a private biotechnology company, to Bristol-Myers Squibb. The move gives Bristol-Myers Squibb full rights to Padlock’s protein/peptidyl arginine deiminase inhibitor discovery program, according to a press release from the companies.

The protein/peptidyl arginine deiminase (PAD) inhibitor discovery program seeks to develop transformative treatment approaches for rheumatoid arthritis (RA) and, according to the release, may also help treat systemic lupus erythematosus. According to the release, PADs are an autoantigen-producing family of enzymes that may actively work in the development and progression of RA and other autoimmune diseases, and their inhibition may alter disease progression.

“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,” according to the release. “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.”

“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,” Michael Gilman, PhD, founder and chief executive officer of Padlock Therapeutics, said in the release. “In Bristol-Myers Squibb, we found an excellent home for our program based on their deep commitment to science and developing transformational therapies. We are confident that Bristol-Myers Squibb can leverage the scientific foundation built by Padlock's founders, team and advisors to help patients with serious autoimmune diseases.”

“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,” Francis Cuss, MB BChir, FRCP, executive vice president and chief scientific officer of Bristol-Myers Squibb, said in the release. “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.”

Terms of the transaction include upfront and near-term contingent milestone payments of up to $225 million and additional contingent consideration of up to $375 million at certain milestones. Bristol-Myers Squibb and Padlock expect the transition to close during the second quarter of 2016.

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