(Reuters) - Bristol-Myers Squibb Co (BMY.N) said on Monday it bought privately held drug developer Cardioxyl Pharmaceuticals Inc in a deal worth up to $2.07 billion, to gain access to a heart failure treatment.
Bristol-Myers said Cardioxyl’s CXL-1427, which is in mid-stage studies, would add to its basket of heart treatments that include three experimental treatments in early- and mid-stage studies.
At least 5.1 million Americans suffer from heart failure, for which there is no cure, according to the Centers for Disease Control and Prevention.
CXL-1427 works by releasing the chemical compound nitroxyl and relaxing the heart muscle, helping it expand and improving blood flow, Bristol-Myers said in a statement.
The company said it would pay up $300 million upfront and that it expected the deal to hurt full-year profit by 12 cents per share.
Bristol-Myers shares closed at $65.95 on Friday.