Updated from 8:55 a.m. EDT
was bid up sharply in premarket trading after
anointed a diabetes treatment it's developing.
The companies entered a licensing and commercialization agreement covering Flamel's Basulin, a controlled-release form of insulin that is about to enter phase II clinical trials. The agreement calls for Bristol-Myers to assume the cost of future development and manufacturing of the drug, in return for exclusive worldwide rights to it.
Bristol-Myers will pay Flamel $20 million now and $145 million when certain milestones are reached. It will also pay "double-digit royalties" to Flamel when and if the treatment hits the market.
Flamel closed Wednesday at $26.95 on the
The pact needs antitrust approval.