Having just bought UK antibody developer Domantis, GlaxoSmithKline has
again embraced the world of biotechnology through an alliance with Epix
Pharmaceuticals that could be worth over $1 billion to the small US firm.
The companies have announced a worldwide multi-target strategic
collaboration to develop medicines targeting four G-protein coupled
receptors, including EPIX’s novel 5-HT4 partial agonist programme,
PRX-03140, which is in early-stage clinical development for the treatment
of Alzheimer’s disease.
In financial terms, Epix will get an initial payment of $35 million,
including $17.5 million in the form of the purchase of three million
shares by GSK. The deal also calls for payments of up to $1.2 billion
based on the achievement of certain milestones in the GPCR programmes and Epix will also receive tiered double-digit royalties on sales of all
collaboration-developed products.
An interesting clause to the deal is that if GSK exercises the option to
license the Alzheimer’s programme, Epix will retain the right to
co-promote any products that emerge from the pact in the USA.
Unsurprisingly, Epix shares soared to end the day up over 30% at $7.19.
Chief executive Michael Kauffman said that the pact “will provide us with
access to significant capital in the near and long-term” and “the
co-promotion option in this collaboration provides further opportunity for
Epix to build a salesforce in the future.”
GSK stock did not shift a great deal, but the company’s moves into
biotechnology in a bid to improve its pipeline is being looked on with
approval by analysts. The fact that Epix has a potential Alzheimer’s drug
makes the alliance even more interesting.
