KAI could see $200 million in partnership with BMS on heart attack medication

PRINCETON, N.J., and SOUTH SAN FRANCISCO, Calif. Pharmaceutical giant Bristol-Myers Squibb and South San Francisco-based private company KAI Pharmaceuticals announced a joint effort Tuesday to develop and market a drug developed by KAI for treating heart attacks.

The drug, KAI-9803, reduces the severity of heart attacks by inhibiting the delta protein kinase C pathway and thus may reduce the risk of death or heart failure. KAI-9803 will enter Phase 2b testing around the end of 2008.

Under the agreement, Bristol-Myers Squibb will pay KAI an upfront sum of $25 million, as well as up to $192 million in milestone payments. Bristol-Myers Squibb may also purchase $10 million of KAI stock if KAI makes an initial public offering, or under other conditions specified in the agreement.