Tranzyme Pharma will continue to research potential drug candidates under a six-month contract extension with Bristol-Myers Squibb. Financial details were not disclosed, but Bristol-Myers Squibb is paying research and development costs for Tranzyme’s work.
Tranzyme could receive as much as $80 million in milestone payments and royalties under programs Bristol-Myers Squibb chooses to advance. The extension announced Tuesday is for an agreement covering two years that was announced in 2009. Bristol-Myers Squibb has the option to extend the agreement, Tranzyme said in the announcement. Tranzyme is utilizing its proprietary drug discovery and medical chemistry technology to identify compounds of interest. The company went public with a stock offering in April.
Tranzyme has won several patents for its technology that targets internal disorders, such as gastroparesis (weak stomach) and post-operative ileus (POI), or blockage of the intestine with its own drug candidates. Its lead candidate is Ulimorelin, a compound being studied as a treatment for POI. The company expects to complete phase 3 trials during the first half of 2012. Another compound, TZP-102, is in clinical trials as a treatment for weak stomach.