DURHAM -- Tranzyme Pharma, a biopharmaceutical company in Durham, has entered into a multi-million dollar collaboration with drug company Bristol-Myers Squibb Co. to develop novel bioactive macrocycles.

The macrocycles are a new compound class with the high potency and selectivity of large biomolecules and the oral availability and low cost of small molecule drugs, according to the companies.

Under terms of the agreement, Tranzyme will be primarily responsible for early lead discovery, and Bristol-Myers will complete preclinical and clinical development of all products arising from the collaboration, and for their commercialization globally.

Bristol-Myers will provide an upfront payment of $10 million and an additional $3 million to $6 million in research funding to Tranzyme for an initial two-year term. Tranzyme will receive further funding if the agreement is extended and be eligible to receive development and regulatory milestones and tiered royalties for each product resulting from the collaboration.

Total milestone payments under the agreement, excluding royalties, could reach up to approximately $80 million for each target program.

-- From staff reports