Bristol-Myers Squibb (NYSE: BMY) has entered into a definitive agreement to acquire Flexus Biosciences for $1.25 billion, comprised of $800 million in cash upfront with up to $450 million being paid upon certain development milestones. Backed by Kleiner Perkins Caufield & Byers, among others, Flexus has raised about $38 million in equity funding through two rounds, the most recent a $26 million Series B that valued the company at $57 million in December.
The acquisition will give Bristol-Myers Squibb full rights to Flexus' lead preclinical small molecule IDO1-inhibitor, a cancer immunotherapy. In addition, Bristol-Myers Squibb will acquire Flexus' IDO/TDO discovery program, which includes its IDO-selective, IDO/TDO dual and TDO-selective compound libraries. Existing shareholders will form a new entity that will hold all non-IDO/TDO assets of Flexus, including those related to its Phase 1 drug, and retain its current personnel and facilities. Citi acted as exclusive advisor to Flexus and Gunderson Dettmer acted as legal counsel; Kirkland & Ellis is serving as legal advisor to Bristol-Myers Squibb. The transaction is expected to close in 1Q.
The deal will mark KPCB's sixth exit thus far in 2015; it completed more than 30 in 2014. To see KPCB's investment and exit history, closed funds and more, click here.