GSK and ChemoCentryx form inflammatory alliance

The alliance aims to focus on novel medicines targeting four chemokine and chemoattractant receptors for the treatment of a variety of inflammatory disorders, including Traficet-EN, which is in late-stage development for the treatment of inflammatory bowel disease. ChemoCentryx is currently conducting a trial, named PROTECT-1, for Traficet-EN in patients with moderate-to-severe Crohn’s disease.

The collaboration will provide GlaxoSmithKline with access to selected targets from a broad pipeline of chemokine-based therapeutics.

Under the terms of the agreement, ChemoCentryx will be responsible for the discovery and development of small molecule drug candidates targeting four specific chemokine and chemoattractant receptor targets through clinical proof of concept, at which point GSK will have exclusive options to license each product for further development and commercialization on a worldwide basis.

ChemoCentryx will receive an upfront payment of $63.5 million, comprised of cash and an equity investment in the form of a series D financing. In addition, ChemoCentryx will receive research funding and will be eligible to earn milestone payments up to, potentially, $1.5 billion, across six product options on the four targets, assuming successful development and commercialization.

ChemoCentryx will also receive double-digit royalties on all collaboration product sales and will be able to increase royalties in certain instances by co-funding development through phase III clinical trials.

Furthermore, under certain circumstances, upon an initial public offering by ChemoCentryx, GSK will invest in ChemoCentryx’s common stock.