GSK and Pharmacopeia Enter Into Drug Discovery and Development Alliance
News Mar 31, 2006
GSK, through its recently established Center of Excellence for External Drug Discovery (CEEDD), and Pharmacopeia will collaborate to deliver clinically validated therapeutic candidates to GSK's global research and development organization.
The aim of the alliance is for Pharmacopeia to discover active molecules and bring them forward to clinical proof of concept, yielding candidates in broad therapeutic areas.
GSK will have exclusive options to conduct Phase III clinical trials and to commercialize pharmaceutical products from the collaboration on a worldwide basis.
Pharmacopeia will retain rights to programs for which GSK does not exercise its option.
Maxine Gowen, Ph.D., Senior Vice President of GSK and head of the Center of Excellence for External Drug Discovery at GSK stated, "The Pharmacopeia relationship exemplifies a new collaborative model for GSK."
"Through the CEEDD we will ally GSK's understanding of medical needs with biotech innovation to bring new medicines to patients."
"At the same time as GSK provides its broad experience, Pharmacopeia brings its unique perspective that, consistent with the CEEDD's mission, adds to our internal capabilities."
"We are very pleased to be able to announce the Pharmacopeia alliance as the first new collaboration for the CEEDD."
Under the terms of the agreement, Pharmacopeia will receive $15 million in cash payments from GSK.
In addition, each drug development program pursued under the alliance will be subject to success-based milestone payments totaling up to $83 million for a successful program and a double-digit royalty.
In connection with the alliance, GSK also receives warrants to purchase Pharmacopeia stock at a 25% premium to the trailing 30-day closing price average at the commencement of the alliance.
"The right pharma collaborators - and GSK is clearly one of the best - can contribute exquisitely to our strategy of forward integrating to clinical validation and managing the risks and returns of drug discovery and development," said Les Browne, Ph.D., President and Chief Executive Officer of Pharmacopeia.
"This new alliance with GSK's CEEDD, which is unlike anything we have done previously, is structured to leverage the existing capabilities at Pharmacopeia for discovery as well as evolving our development capabilities."
"Importantly, commensurate with our taking compounds further along in the development pipeline, the economics of the alliance reward us appropriately for success."