Ranbaxy and GSK expand strategic alliance

Ranbaxy Laboratories has modified and expanded the terms of its 2003 strategic alliance with UK drug major GlaxoSmithKline, providing the Indian drugmaker with more drug-development responsibilities and further financial opportunities. Under the new agreement, Ranbaxy will advance leads beyond candidate selection to completion of clinical proof-of-concept and GSK will thereafter conduct further clinical development for each program and take resulting products through the regulatory approval process to final commercialization. Ranbaxy could receive over $100.0 million in potential milestone payments for a product it develops and is subsequently launched by GSK in multiple indications, and up to double-digit royalties on worldwide net sales. Ranbaxy will retain the right to co-commercialize the products in India and the firm noted that the new milestones and royalties will apply to both future programs and two currently-ongoing projects.