GSK, Anacor Extend R&D Collaboration

GlaxoSmithKline and Anacor Pharmaceuticals have amended and expanded their R&D pact to provide GSK the option to extend its rights around the bacterial enzyme target leucyl-tRNA synthetase (LeuRS), as well as to add new programs for tuberculosis (TB) and malaria using Anacor’s boron chemistry platform. As a result of the amendment, Anacor will receive a $5 million upfront payment as well as additional potential milestones and research funding of as much as $11.3 million by the end of 2012. Anacor is also eligible to receive additional milestones and royalties on future sales of resulting products.

The original collaboration began in October 2007 and was centered on the discovery, development and worldwide commercialization of boron-based systemic anti-infectives against four discovery targets, including LeuRS. As part of the current amendment, all rights to the other three original targets will revert to Anacor.

The amended agreement provides an option for GSK to expand its rights around the bacterial enzyme target LeuRS in return for a milestone payment ranging from $5.5 million to $6.5 million, depending upon the timing of such payment. Any future work under the collaboration directed towards LeuRS will be funded by GSK through a collaborative research program under which Anacor and GSK would pursue additional drug candidates to candidate selection, following which, GSK would have the right to undertake further development and commercialization. Anacor would be eligible for additional milestones and royalties on sales of resulting products.

In addition, the amendment to the collaboration adds a new program for TB, under which GSK will fund Anacor’s TB research activities through to candidate selection. Upon meeting candidate selection criteria, GSK will have the option to license TB compounds and would be responsible for all further development and commercialization. Anacor would be eligible for additional milestones and royalties on sales of resulting products.

The amendment also includes the option for GSK to acquire rights to Anacor’s malaria program, focused on development of the lead compound, AN3661, currently being developed through a collaboration with Medicines for Malaria Venture (MMV). Anacor and MMV will continue to conduct preclinical, Phase I and Phase II proof of concept studies for AN3661, and GSK will have the option to license the program on an exclusive worldwide basis upon AN3661 achieving Phase I proof of concept. Anacor would receive $5 million upon exercise of this option, less $1.7 million which will be paid to MMV as reimbursement for previously received funding and which will be reinvested in future anti-malarial research. Anacor would also be eligible for additional milestones and royalties on sales of resulting products.

“We have had a productive relationship with GSK over the last four years and are pleased to expand our research efforts with them to include tuberculosis and malaria,” said David Perry, chief executive officer of Anacor. “This amendment allows us to continue our work in neglected diseases and provides additional financial resources for our lead clinical programs.”