Bristol-Myers Squibb Company and Galecto Biotech AB have announced that the companies, together with the Galecto Biotech shareholders, have entered into an agreement that provides Bristol-Myers Squibb the exclusive option to acquire Galecto Biotech AB and gain worldwide rights to its lead asset TD139, a novel inhaled inhibitor of galectin-3 in Phase 1 development for the treatment of idiopathic pulmonary fibrosis (IPF) and other pulmonary fibrotic condition. Total aggregate payments in the transaction have the potential to reach $444 million, which includes the option fee, an option exercise fee and subsequent clinical and regulatory milestone payments.

Galecto Biotech was founded in 2011 and the current shareholders include Novo Seeds, MS Ventures, Sunstone Capital and SEED Capital.

Setterwalls represents Galecto Biotech and its shareholders in the transaction. Setterwalls team is led by Ola Grahn and includes among other Niclas Hermansson and Kristoffer Ståhl.