Ikaria to pay $285 mln for Bioline drug license

JERUSALEM, June 6 (Reuters) - Israeli drug development company BiolineRX (BLRX.TA) said on Monday that New Jersey-based Ikaria Holdings Inc had agreed to pay $285 million for a license to develop and market its BL-1040 drug for heart attack patients.

Bioline shares were up 15.3 percent at 2.04 shekels in morning trade in Tel Aviv.

Ikaria will pay an undisclosed first payment to Bioline when the deal is finalised. The deal needs approval by Israel's chief scientist, who backed the development of BL-1040 as part of a biotech incubator project, the company said in a statement to the Tel Aviv Stock Exchange.

Bioline said Ikaria would pay the remaining amount after the drug is successfully developed, tested and approved -- costs of which will be covered by Ikaria.

Bioline will also get 11 to 15 percent from yearly sale revenues and reserves the right to produce BL-1040 in Israel. It would supply Ikaria with part of its demand.

BL-1040 is a myocardial implant for the treatment of acute myocardial infarction. (Reporting by Joseph Nasr, Editing by Hans Peters)