Under the terms of the agreement, GlaxoSmithKline (GSK) will receive exclusive worldwide rights to co-develop and co-commercialize almorexant. Actelion will continue to lead the ongoing development program and potential registration for almorexant in the first indication, primary insomnia, with GSK contributing 40% of the costs. Almorexant will also be studied in other orexin-related disorders and all costs related to these programs will be shared equally.
Actelion will receive an upfront payment of CHF150 million and will be eligible for additional potential milestone payments of up to CHF415 million in regards to the successful development and approval of almorexant in primary insomnia. In addition, Actelion will be eligible to receive additional milestone payments, pending successful development of two other major indications for almorexant yet to be evaluated through clinical investigation.
If all three indications were successfully registered, approved and commercialized, and exceptional sales targets met for all these indications, Actelion would be eligible to receive additional potential milestone payments of up to CHF2.73 billion.
Actelion and GSK will equally share costs and profit in key pharmaceutical markets worldwide where they will co-commercialize almorexant. In these markets Actelion will book all sales and GSK will book its share of profit. GSK will grant Actelion the right to assist in the commercialization – as a paid-for sales force – of a GSK product in certain countries and for a limited period of time. In emerging markets, GSK will commercialize the product exclusively, with Actelion receiving a share of profit.
Jean-Paul Clozel, CEO of Actelion, said: “This alliance allows Actelion and GSK to create significant additional value by rapidly expanding clinical development of almorexant beyond primary insomnia.”