GSK, Synta Enter Oncology Alliance

GlaxoSmithKline and Synta Pharmaceuticals Corp. have entered a global collaboration for the development and commercialization of STA-4783, a small-molecule oxidative stress inducer in Phase III development for the treatment of metastatic melanoma.

Under the terms of the agreement, the companies will share responsibility for development and commercialization of STA-4783 in the U.S. and GSK will be responsible for development and commercialization outside the U.S. Synta will receive an upfront payment of $80 million and is eligible to receive as much as $135 million for success-based milestones in metastatic melanoma, further development and regulatory milestones of as much as $450 million across various indications, and as much as $300 million in commercial milestone payments based on net sales.

Synta will continue to fund all development for metastatic melanoma in the U.S. and the companies will share development costs for STA-4783 in other indications both in the U.S. as well as costs outside of the U.S. Also, GSK may have the option to purchase as much as $45 million of Synta’s common stock based on the achievement of specified development and regulatory milestones.

“The data we have seen from the Phase II trials conducted by Synta have given us confidence in the potential of STA-4783 as a novel means of treating metastatic melanoma, a disease for which there is high unmet medical need,” said Moncef Slaoui, chairman R&D, GSK.