GSK and Cytokinetics in oncology pact

GlaxoSmithKline has entered into a broad strategic collaboration withCytokinetics to discover and develop novel small-molecule therapeutics targeting mitotic kinesins for applications in the treatment of cancer and other diseases. Under the terms of the agreement, GSK has put up funding of approximately $50 million over a minimum of five years, which includes a $14 million upfront cash payment and another $14 million to buy Cytokinetics stock.

In addition, GSK may make milestone payments to Cytokinetics of $30-$50 million per target for products directed to each of over 10 mitotic kinesins. The former will be responsible for worldwide commercialization of any products that arise from the collaboration, while Cytokinetics retains a product-by-product option to co-fund certain development activities, thus increasing its royalty and affording co-promotion rights in North America. Allen Oliff, GSK's senior vice president at the Center of Excellence for Drug Discovery, Oncology, Cardiovascular & Genitourinary, claimed that "this collaboration is proof-positive of our commitment to new approaches in small-molecule drug discovery for oncology.''