BioCentury
ARTICLE | Top Story

GSK, Five Prime in second discovery deal

April 18, 2012 1:08 AM UTC

GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) and Five Prime Therapeutics Inc. (South San Francisco, Calif.) partnered to identify targets and drug candidates relevant to refractory asthma and chronic obstructive pulmonary disease (COPD). Under the deal, Five Prime will use its technology platforms to identify and validate drug targets and candidates from its collection of functional human secreted proteins and transmembrane receptor proteins.

GSK will have the option to license exclusive rights to targets discovered under the deal. For the majority of licensed targets, GSK will be responsible for all development and commercialization. For an undisclosed number of the targets, Five Prime would have the opportunity to develop biologics through clinical proof-of-mechanism trials, after which GSK will have the option to license the products. Five Prime is eligible for up to $30 million over the next four years from an upfront payment, the purchase of equity by GSK, research funding and option payments. Five Prime is also eligible for option exercise fees and milestones for each product, including up to $193.5 million for each biologic GSK licenses from Five Prime after proof of mechanism. Five Prime is also eligible for royalties on each product. ...