GlaxoSmithKline and Myogen sign ambrisentan licensing deal and Flolan distribution agreement

UK pharmaceutical major GlaxoSmithKline has announced a two-part collaboration with Denver, USA-based drugmaker Myogen covering the development of products for the treatment of pulmonary arterial hypertension. Myogen has licensed its endothelin receptor antagonist, currently involved in a Phase III trial (Marketletter December 19, 2005), to the UK firm extending to all territories outside the USA. The firms anticipate that filing for marketing approval in the USA and Europe will take place later in the year.

Licensing deal could be worth $80 million

Under the terms of the license agreement, Myogen will receive an upfront payment of $20.0 million and is set to received funds based on the achievement of developmental and regulatory milestones which may total around $80.0 million. Myogen is also entitled to stepped royalties based on product sales with an estimated average royalty in the mid-20% range, reflecting the late-stage development status and market potential for the drug.