Bristol-Myers Squibb Company and KAI Pharmaceuticals, Inc., a privately held biotechnology company, have signed an agreement for the global development and commercialization of KAI-9803, KAI's proprietary, first-in-class inhibitor of the delta protein kinase C pathway (delta PKC).

KAI-9803 is designed to reduce the size of the heart attack and to improve clinical outcomes during treatment of acute myocardial infarction (AMI). KAI-9803 is expected to enter phase IIb clinical testing by the end of 2008 in patients with ST elevation myocardial infarction (STEMI).

Under the terms of the collaboration, KAI will receive an upfront cash payment of $25 million. Bristol-Myers Squibb will fund all future development, including the phase IIb clinical trial to be conducted by KAI. In addition, at KAI's option, Bristol-Myers Squibb will purchase $10 million of KAI stock at the time of a qualified initial public offering, or under other specified future conditions. KAI may receive from Bristol-Myers Squibb up to $192 million in milestone payments based on the achievement of pre-specified development and regulatory milestones for KAI-9803.

KAI could be eligible for additional milestones if other compounds are developed. KAI will have an option to co-promote KAI-9803 in the United States and will receive royalty payments on product net sales worldwide. The closing of the transaction is subject to customary regulatory approvals.

KAI-9803 is an isozyme-selective inhibitor of the delta protein kinase C pathway designed to reduce the size of the heart attack and to improve clinical outcomes during treatment of acute myocardial infarction (AMI). During a heart attack, blood flow to the heart is compromised resulting in myocardial and endothelial cell necrosis and apoptosis. Selective inhibition of the delta PKC isozyme by KAI-9803 may reduce the injury to myocardial and endothelial cells during a heart attack and reduce the risk of death or heart failure.