Bristol-Myers Squibb Succeeds in Bid for Inhibitex

Bristol-Myers Squibb (BMS; New York, NY, USA) has acquired experimental hepatitis C virus (HCV) treatment maker Inhibitex (Alpharetta, GA, USA) for USD 2 billion in cash, in a transaction that carries a 163% premium.

BMS’s main target is Inhibitex’s lead asset, INX-189, a potent guanosine nucleotide polymerase inhibitor that is being developed as an oral medication for HCV, and has showed promising signs while in Phase II development. Characteristics of INX-189 include a high genetic barrier to resistance, activity against multiple HCV genotypes, and once-daily oral dosing. Laboratory tests showed INX-189 killed 90% of the virus at very low concentration, making it the most potent compound of its kind developed to date. Nucleotides/nucleosides are emerging as an important class of antivirals that may play a critical role as the backbone of future direct-acting antiviral-only combination approaches to HCV treatment.

“The acquisition of Inhibitex builds on Bristol-Myers Squibb’s long history of discovering, developing, and delivering innovative new medicines in virology and enriches our portfolio of investigational medicines for hepatitis C,” said Lamberto Andreotti, CEO of Bristol-Myers Squibb. “There is significant unmet medical need in hepatitis C. This acquisition represents an important investment in the long-term growth of the company.”

“This transaction puts INX-189 and the company’s other infectious disease assets in the hands of an organization that can more optimally develop them,” said Russell Plumb, president and CEO of Inhibitex. “Bristol-Myers Squibb’s expertise in antiviral drug development, and its existing complementary portfolio, will assure that the potential of INX-189 is realized as part of future oral combination therapies.”

The buyout comes after Gilead Sciences (Foster City, CA, USA) acquired hepatitis C drug maker Pharmasset (Princeton, NJ, USA) for USD 11 billion in November 2011, in a bid to diversify away from their mainstay, HIV drugs, and gain a lead in the fast-growing market for HCV medicines.

Until May 2011, the standard of care treatment for HCV has been pegylated interferon combined with ribavirin, which was effective in curing approximately 50% and 75% of genotype 1 and genotype 2, or 3 patients, respectively. This course of treatment, which ranges from 6 to 12 months (depending on the HCV genotype of a patient), is associated with significant side effects. As a result of this limited efficacy and tolerability, historically less than 5% of people diagnosed with HCV actually receive treatment, and approximately one third of these experience a successful treatment outcome.

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