Epix, GlaxoSmithKline deal

EPIX partnered with GSK to discover, develop and commercialize drug candidates targeting four G-protein coupled receptors (GPCRs) for a variety of diseases. The deal includes EPIX's PRX-03140, a serotonin (5-HT4) receptor agonist that has completed a Phase Ib trial to treat Alzheimer's disease (AD). EPIX will receive $35 million up front, including $17.5 million through the purchase of 3 million shares, a 5% premium on EPIX's close of $5.52 on Dec. 11, the last trading day before the deal was announced. EPIX also is eligible to receive $1.2 billion in milestones, plus tiered double-digit royalties.

EPIX is responsible for discovery and development through clinical proof-of-concept, at which point GSK will have an exclusive option to license each product for further development and worldwide commercialization. If GSK licenses EPIX's 5-HT4 partial agonist program, EPIX will retain the right to co-promote products in the U.S. ...