GSK exercises option from Five Prime

GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) exercised its option to license drug candidates discovered as part of a 2010 deal with Five Prime Therapeutics Inc. (NASDAQ:FPRX). GSK took exclusive rights to an undisclosed muscle disease program, discovered using the biotech's library of human extracellular proteins and target screening and discovery technologies.

GSK will have exclusive rights to develop and commercialize the programs globally, at its own cost. Five Prime will receive a $1.5 million payment triggered by the exercise and is entitled to up to $122.5 million in milestones as well as single digit royalties. It received $15 million upfront as well as research funding from the pharma. ...