One of the hardest things for partners to do is figure out how to divvy up the spoils. And as any good accountant knows, there are many ways to massage the numbers to bring profits down close to zero. Thus instead of going for profit-sharing in its deal with GlaxoSmithKline plc last week, Cytokinetics Inc. opted for a royalty deal that it thinks will be easier to monitor while giving it options to participate in downstream development.

In signing GSK (London, U.K.) as its first corporate partner last week, Cytokinetics preferred royalties to a profit-sharing arrangement because of the nature of the overall agreement, according to Robert Blum, vice president of business development. Under the deal, GSK is ultimately responsible for