GlaxoSmithKline and Synta Announce Development and Commercialization Collaboration
News Oct 11, 2007
GlaxoSmithKline (GSK) and Synta Pharmaceuticals Corp. have announced the execution of a global collaboration agreement for the joint development and commercialisation of STA-4783, a first-in-class, small-molecule, oxidative stress inducer that is entering Phase 3 clinical development for the treatment of metastatic melanoma.
Under the terms of the agreement, the companies will share responsibility for development and commercialisation of STA-4783 in the US, and GSK will have exclusive responsibility for development and commercialisation of STA-4783 outside the US.
Synta will receive an upfront cash payment of $80 million. Synta will also be eligible to receive potential milestone payments of up to $135 million for events leading to approval of STA-4783 in metastatic melanoma, further development and regulatory milestones of up to $450 million across various indications and up to $300 million in potential commercial milestone payments based on achieving certain net sales thresholds.
Synta will continue to fund all development for metastatic melanoma in the US and the companies will share responsibility and costs for development of STA-4783 in other indications.
ynta and GSK will jointly commercialise STA-4783 in the US with Synta receiving a tiered profit share based on levels of annual net sales. The parties will share development costs outside of the US and Synta will receive double-digit tiered royalties on net sales.
In addition, GSK may, subject to Synta’s agreement, purchase, up to $45 million of Synta’s common stock upon the future achievement of specified development and regulatory milestones.
The agreement is subject to antitrust clearance by the US government under the Hart-Scott-Rodino Act. Common stock purchases may be subject to approval of Synta’s shareholders if required under the rules and regulations of The NASDAQ Stock Market.