GSK and EPIX enter into $1.2B R&D deal

USA-based biopharmaceutical firm EPIX Pharmaceuticals says that it has entered into a accord with UK drug major GlaxoSmithKline, which will focus on the development of drugs that target G-protein coupled receptors in a variety of disease indications. The collaboration will employ EPIX's novel 5-hydroxytryptamine-4 partial agonist PRX-03140 in the development of an Alzheimer's disease treatment, which will be conducted at GSK's Center of Excellence for External Drug Discovery (CEEDD).

Under the terms of the agreement, GSK will make an upfront payment of $35.0 million, $17.5 million of which will be via the purchase of 3,009,027 shares of EPIX' common stock. In addition, the US company will be eligible to earn up to $1.2 billion in potential milestones based on the achievement of certain discovery, developmental and regulatory goals, as well as tiered royalties from the sale of products that are successfully commercialized.

EPIX will be responsible for development of the drug candidates through to clinical proof-of-concept, at which point the UK drug major has an exclusive option to license each compound for further development and commercialization. The US firm retains co-promotion rights.