Vernalis, GSK in cancer deal

Vernalis plc (LSE:VER) and GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) partnered to develop a Vernalis research program against an undisclosed cancer target. Vernalis is responsible for drug discovery, while GSK is responsible for preclinical development. The pharma can exercise an option to license all collaboration compounds upon the filing of an IND. Vernalis will receive $6 million, including $3 million through GSK's purchase of 2 million shares at 87p. Vernalis said it is eligible for more than $200 million in upfront and milestone payments, plus double-digit royalties on sales. Vernalis could receive additional milestones and royalties on products against the target for other indications. ...