), announced recently the completion of its chemistry-based drug
discovery partnership with pharma giant
Bristol-Myers Squibb Company
Following the completion of the deal, Tranzyme Pharma
transmitted the compounds to Bristol-Myers for their further
development across several drug targets. As per the terms of the
deal, Tranzyme Pharma retains the option to pursue few selected
collaboration targets for internal development.
We note that the partnership, established in 2009, aimed to
make use of Tranzyme Pharma's proprietary chemistry technology,
Macrocyclic Template Chemistry, for discovering novel active
macrocycles against multiple diverse biological targets, which
are not easy to access with the help of conventional small
As per the terms of the deal, Tranzyme Pharma was responsible
for early lead compound discovery. Bristol-Myers Squibb has
multiple responsibilities including optimizing the identified
lead compounds. The Pharma major is also responsible for the
completion of the preclinical and clinical development of all the
drugs generated out of the partnership.
The responsibility for their successful commercialization also
rests with Bristol-Myers. Tranzyme Pharma stated in its press
release that the milestone payments under the deal (without
royalties and sales milestones) could amount to approximately $80
million for each target program.
We are positive on Tranzyme Pharma's tie-up with a leading
pharma player like Bristol-Myers. Tranzyme Pharma, which carries
a Zacks #3 Rank (Hold) in the short run, focuses on the
discovery, development and the commercialization of novel,
mechanism-based therapies for treating patients suffering from
upper gastrointestinal motility disorders.
Currently, we have a long-term Neutral recommendation on
Bristol-Myers. The stock carries a Zacks #4 Rank (Sell) in the
short run. Large-cap pharma companies that currently look
). Novo Nordisk carries a Zacks #2 Rank (Buy).
BRISTOL-MYERS (BMY): Free Stock Analysis
NOVO-NORDISK AS (NVO): Free Stock Analysis
TRANZYME INC (TZYM): Free Stock Analysis
To read this article on Zacks.com click here.