April 18, 2012

Pharmacuetical Business Review

Five Prime, GSK sign strategic drug discovery alliance

Five Prime Therapeutics, a biotechnology company, has entered into its second strategic drug discovery alliance with GlaxoSmithKline (GSK).

The GSK gains exclusive access to FivePrime's drug discovery platforms in up to six programs to identify first-in-class agents and new mechanisms relevant to refractory asthma and chronic obstructive pulmonary disease (COPD).

As per the agreement, FivePrime will apply its technology platforms to identify and validate potential drug targets and drug candidates where as GSK has an option to exclusively license selected targets discovered by FivePrime in the collaboration.

GSK is responsible for additional preclinical studies, clinical development, manufacturing and worldwide commercialization of products, for a majority of licensed targets.

FivePrime is eligible to receive up to $30m over the next four years from an upfront fee, the purchase of FivePrime equity by GSK, research funding, and option payments related to the research program.

FivePrime is even eligible to receive $193.5m in potential option exercise fees and milestone payments, as well as tiered royalties on global net sales for each product resulting from a selected drug target.

FivePrime president and CEO Lewis Williams said: "We are delighted to form this second strategic alliance with GSK to find first-in-class drugs and drug targets for treatment-refractory respiratory diseases, which is a core area for FivePrime."