WRAL Tech Wire is reporting that CED Member Tranzyme Pharma will be transferring several compounds to Bristol-Myers Squibb.
The transfers could land as much as $80 million each in milestone payments and royalties, WRAL Tech Wire reports.
The two firms first established a drug development partnership in 2009, and the partnership was extended in 2011.
"We have enjoyed an exceptionally close and productive relationship with Bristol-Myers Squibb and are excited to be transitioning now the fruits of our discovery collaboration to our partner for further development," said Helmut Thomas, Tranzyme's senior vice president for research and preclinical development, in a statement. "This milestone serves to further validate our technology's broad application to a diverse range of difficult drug targets and its value in the discovery of drugs for the treatment of diseases far beyond our own internal focus on gastrointestinal and metabolic disorders."
The announcement comes at a good time for Tranzyme, whose shareholders will be pleased with the news. Shares in Tranzyme (Nasdaq: TZYM) fell sharply last month when Tranzyme disclosed a drug test failure. Shares closed at 55 cents on Thursday.