GSK, EPIX Pharma Enter Discovery Pact

GlaxoSmithKline and EPIX Pharmaceuticals have entered a worldwide multi-target strategic collaboration to discover, develop and market medicines targeting four G-protein coupled receptors (GPCRs) for the treatment of a variety of diseases, including EPIX’s novel 5-HT4 partial agonist program, PRX-03140, in early-stage clinical development for the treatment of Alzheimer’s disease. The alliance with GSK will be conducted through its Center of Excellence for External Drug Discovery (CEEDD).

EPIX will receive initial payments of $35 million and will be eligible to earn potential milestones of as much as $1.2 billion based on the achievement of certain discovery, development, regulatory and commercial milestones across the four GPCR programs. EPIX will also receive royalties on sales by GSK of all collaboration-developed product sales.

EPIX will be responsible for the discovery and development of small molecule drug candidates, including PRX-03140 for the treatment of Alzheimer’s disease, through to clinical proof of concept, at which point GSK will have an exclusive option to license each product for further development and commercialization on a worldwide basis. If GSK exercises the option to license EPIX’s 5-HT4 partial agonist program, EPIX will retain the right to co-promote any products from that program in the U.S.

“We are very pleased to enter into this collaboration with GSK, a world-class pharmaceutical company,” stated Michael G. Kauffman, M.D., Ph.D., chief executive officer of EPIX. “This alliance will provide us with access to significant capital in the near and long term to support the ongoing development of PRX-03140 and three additional programs, as well as the ability to continue to move forward our existing programs. Furthermore, the co-promotion option in this collaboration provides further opportunity for EPIX to build a sales force in the future.”