Cellzome in up to 508 million-euro deal with GlaxoSmithKline on inflammatory disease

Anglo-German firm Cellzome says it has formed a second strategic alliance with UK drug giant GlaxoSmithKline providing the latter with exclusive access to Cellzome's proprietary Episphere technology in the emerging field of epigenetics as applied to immune-inflammatory disease. Epigenetic mechanisms play a key role in controlling immune cell differentiation and inflammatory gene expression during an excessive inflammatory response.

Financial terms of the deal mean that Cellzome will receive an upfront payment of 33 million euros ($44.9 million), comprising technology access fees and the purchase of equity. In addition, Cellzome is eligible for milestone payments and tiered royalties for each program. Milestones under this collaboration could reach over 475 million euros if all programmes under the alliance are successfully developed and commercialised.

The deal follows on from one signed between the companies in September 2008 focusing on Cellzome's Kinobeads technology that saw the Cambridge-headquartered firm receive upfront payments of £14.4 million ($21.7 million) in both cash and equity and provision for up to £118 million per program in potential development, regulatory and commercial milestones.