NEW YORK, Dec 12 (Reuters) - Epix Pharmaceuticals Inc. and GlaxoSmithKline Plc (GSK.L: Quote, Profile, Research) on Tuesday said they had forged a deal, potentially worth up to $1.2 billion to Epix, to develop drugs for Alzheimer's disease and other conditions, lifting Epix shares 46 percent in early electronic trading.
The collaboration involves research into discovering medicines that target four members of the well-known family of proteins called G-protein coupled receptors (GPCRs).
Under the deal, Epix (EPIX.O: Quote, Profile, Research) will receive an initial payment of $35 million, including $17.5 million through London-based Glaxo's (GSK.L: Quote, Profile, Research) purchase of 3 million Epix shares.
"In addition, Epix will be eligible to earn potential milestones of up to $1.2 billion based on the achievement of certain discovery, development, regulatory and commercial milestones across the four GPCR programs," the companies said in a joint release.
Reuters Pictures Photo
Editors Choice: Best pictures from the last 24 hours. View Slideshow
Moreover Epix, a tiny biotechnology company based in Lexington, Massachusetts, will also receive tiered double-digit royalties on Glaxo sales that flow from the collaboration.
Epix, which had third-quarter revenue of $1.3 million, will be responsible for discovering and developing potential medicines until their potential usefulness is verified.
At that point, Glaxo will have an exclusive option to license each product for further development and global sale, the companies said.
One of the four GPCR programs -- referred to as the 5-HT4 partial agonist program -- is now in early-stage clinical development by Epix against Alzheimer's disease.
Should Glaxo exercise its option to license that program, Epix will have U.S. rights to co-promote any eventual drugs from the program, the companies said.
posted
It's interesting to see the money flow prior to this Dec 12 news and even the price action the few days before.
I'm keeping an eye on this one as it has several drugs in various stages of clinical trial and development, a couple in phase2. I think the Glaxo connection will blip the radar before any bomb is actually dropped.
Anyone have any other/additional thoughts here?
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
