AMRI, BMY replace chemistry deal

Albany Molecular (AMRI) said it signed a letter of intent with Bristol-Myers (BMY) to replace a chemistry services contract between AMRI and DuPont Pharmaceuticals, which BMY acquired in October. Under the new 3-year deal, AMRI will provide fee-for-service chemistry services to BMY. The old contract with DuPont will be terminated and BMY will make an up-front payment of $1 million to AMRI.

BMY also will license to AMRI a pre-clinical compound for attention deficit hyperactivity disorder (ADHD) and CNS indications, and related patent applications. BMY may receive up to $3 million of AMRI warrants, with $500,000 of the warrants upfront. In November, AMRI said BMY was winding down and terminating the AMRI/ DuPont contract. Going forward, AMRI noted that its support of BMY's projects will be "significantly" reduced compared to 2001. ...