GSK collaboration with Pharmacopeia leads to first L1M milestone

Pharmacopeia, a US firm focused on the discovery and development of novel, small-molecule therapeutics, says it has identified two new lead compounds for advancement in its alliance with UK drug giant GlaxoSmithKline, through its collaboration with the latter's Center of Excellence for External Drug Discovery. The first of the lead compounds forms the basis of a new lead optimization program based on identifying a treatment for respiratory disease. The other newly-identified lead product is the second from a program in inflammatory pain. As a result, Pharmacopeia will receive milestone payments totaling $1.0 million from GSK.

$83M per program possible for US firm

Under the terms of the collaboration, Pharmacopeia has already received $10.0 million from GSK in connection with early discovery activities and is entitled to a further $5.0 million on the completion of additional early discovery activities (Marketletter July 23). The US firm is also entitled to success-based milestone payments totaling up to $83.0 million per program and potentially double-digit royalties on the sales of any product commercialized by GSK under the multi-program deal. Should GSK decline its option to complete pivotal trials of alliance programs, Pharmacopeia may independently pursue them, subject to its obligations to GSK under the accord.