GSK gains rights to Idenix' novel NNRTI for HIV, at a cost of up to $450 million

US firm Idenix Pharmaceuticals says it has entered into a license agreement granting UK drug giant GlaxoSmithKline exclusive worldwide  rights to IDX899, a novel non-nucleoside reverse transcriptase inhibitor  in Phase II clinical development being developed by Idenix for the  treatment of HIV/AIDS. New NNRTIs are needed to address the increasing  prevalence of viral resistance and side effects associated with this  drug class. To date, IDX899 has demonstrated high potency with low  milligram doses, a high barrier to drug resistance, favorable  risk/benefit profile, and the convenience of once-a-day administration,  says Idenix.

Under the terms of the agreement, GSK will assume all development  responsibility and associated costs for IDX899, and Idenix will receive  an upfront payment of $34.0 million and will be eligible to receive up  to $416.0 million in development, regulatory and sales milestones.  Furthermore, if IDX899 is successfully developed and commercialized,  Idenix will receive double-digit, tiered worldwide royalties.

Value-creating deal