GSK and ChemoCentryx Enter into Drug Discovery and Development Alliance

GlaxoSmithKline and ChemoCentryx, Inc. have announced a worldwide multi-target strategic alliance to discover, develop and market medicines targeting four chemokine and chemoattractant receptors for the treatment of a variety of inflammatory disorders, including Traficet-EN^® in late stage development for the treatment of inflammatory bowel disease (IBD).

This collaboration provides GSK access to selected targets from one of the broadest pipelines of chemokine-based therapeutics in the biopharmaceutical industry leveraging ChemoCentryx's expertise and pioneering insight into the chemokine system.

The alliance with GSK will be conducted through its Center of Excellence for External Drug Discovery (CEEDD).

ChemoCentryx will receive an upfront payment of $63.5 million comprised of cash and an equity investment in the form of a Series D financing.

In addition, ChemoCentryx will receive research funding and will be eligible to earn milestone payments up to, potentially, $1.5 billion, across six product options on the four targets, assuming successful development and commercialization.

ChemoCentryx will also receive double-digit royalties on all collaboration product sales and will be able to increase royalties in certain instances by co-funding development through Phase III clinical trials.

Furthermore, under certain circumstances, upon an initial public offering by ChemoCentryx, GSK will invest in ChemoCentryx's common stock.

Under the terms of the agreement, ChemoCentryx will be responsible for the discovery and development of small molecule drug candidates targeting four specific chemokine and chemoattractant receptor targets through clinical proof of concept, at which point GSK will have exclusive options to license each product for further development and commercialization on a worldwide basis.

The agreement encompasses Traficet-EN, a specific CCR9 antagonist currently in a multinational clinical trial (PROTECT-1) of 400 patients with IBD, as well as three ongoing pre-agreed preclinical research programs involving named but undisclosed chemokine and chemoattractant receptor targets.

ChemoCentryx will retain the option to co-develop and to co-promote Traficet-EN in IBD to certain physician specialists in the U.S.

"We are extremely pleased to be working closely with GSK as a premier global pharmaceutical company," said Thomas J. Schall, Ph.D., President and CEO of ChemoCentryx.

"Their outstanding commitment to pharmaceutical innovation and broad expertise and experience in the development and commercialization of new medicines in inflammatory conditions make them an ideal collaborator."

"This important alliance with GSK will provide us with access to significant capital in the near and long term to support the ongoing development of each of these programs, as well as the ability to continue to discover and bring forward multiple new compounds targeting the chemokine system."

Maxine Gowen, Ph.D., Senior Vice President and head of GSK's CEEDD stated, "The ChemoCentryx alliance is a landmark relationship for the CEEDD."

"This collaboration clearly demonstrates GSK's commitment to gain access to leading-edge, best anywhere science and we are excited by the opportunity to work with ChemoCentryx, the leading chemokine company, and their world class team."

"Accessing their expertise and four advanced chemokine programs, including, Traficet-EN in the clinic for IBD, will allow us to bring novel medicines to patients with high unmet need."

ChemoCentryx has established a pipeline of clinical and preclinical stage chemokine-based therapeutics, each targeting distinct chemokine and chemoattractant receptors and offering the potential to treat various diseases.

ChemoCentryx is currently conducting the PROTECT-1 Trial for Traficet-EN in patients with moderate-to-severe Crohn's disease, one of the most common forms of IBD.

Traficet-EN is intended to control the inappropriate inflammatory response underlying IBD by targeting the CCR9 chemokine receptor.

Other programs target receptors that are implicated in a number of inflammatory conditions including rheumatoid arthritis, multiple sclerosis, systemic lupus erythematosus, acute macular degeneration and asthma.