Epix up on GSK deal
EPIX gained $1.67 (30%) to $7.19 on 6.8 million shares on Tuesday after the company partnered with GlaxoSmithKline (LSE:GSK; GSK) to discover, develop and commercialize drug candidates targeting four GPCRs, including EPIX's PRX-03140. The serotonin (5-HT4) receptor agonist 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, and 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. ...