November 2, 2015 / 12:12 PM / in 3 years

Bristol-Myers buys private drugmaker to boost heart treatment pipeline

(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.

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