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Tranzyme to research drugs for Bristol-Myers

Drug developer Tranzyme Pharma said Tuesday it will find and study potential drugs for Bristol-Myers Squibb Co. in a deal worth as much as $16 million initially.
/ Source: The Associated Press

Drug developer Tranzyme Pharma said Tuesday it will find and study potential drugs for Bristol-Myers Squibb Co. in a deal worth as much as $16 million initially.

Tranzyme said it will get a $10 million upfront payment from the New York drugmaker, and $3 million to $6 million in research funding over the next two years. It will get more funding if the partnership is extended, and said it could get as much as $80 million for each drug that is successfully developed and sold.

The agreement also includes possible royalty payments on sales of products that get approved by regulators.

Bristol-Myers Squibb will choose the targets for the potential drugs. Tranzyme, of Research Triangle Park, N.C., will use its technology to identify compounds, and Bristol-Myers will handle preclinical and human testing as well as sales.

Tranzyme has no products on the market, but is developing drugs for constipation, diarrhea, and obesity.