Biotica forms research collaboration with GSK

In a three-year research collaboration, Biotica will use its bioengineering technology to produce compounds that are not readily accessible via conventional medicinal chemistry approaches. GlaxoSmithKline (GSK) will apply its expertise in macrolide drug discovery to optimize further the properties of candidate drugs, and will have responsibility for development and commercialization.

Under the terms of the agreement, Biotica receives an initial cash payment, and is eligible to receive up to GBP86 million per compound in success-based development, approval and commercialization milestone payments, as well as tiered royalties on net sales of resulting products.

In addition, GSK has made an up-front equity investment in a first close of Biotica’s series D financing. The series D round remains open for additional investors and will support progression of the company’s high-value, unpartnered programs, said Biotica.

Edward Hodgkin, CEO of Biotica, said: The deal with GSK significantly boosts our cash position and enables us to further strengthen our position as the leading natural product optimization company. We look forward to working with GSK to exploit the significant potential of macrolides in inflammatory diseases.