GSK, through its recently established Center of Excellence for External Drug Discovery (CEEDD), and Pharmacopeia will collaborate to deliver clinically validated therapeutic candidates to GSK’s global R&D organization.
The aim of the alliance is for Pharmacopeia to discover active molecules and bring them forward to clinical proof of concept, yielding novel candidates in broad therapeutic areas. GSK will have exclusive options to conduct phase III clinical trials and to commercialize pharmaceutical products from the collaboration on a worldwide basis. Pharmacopeia will retain rights to programs for which GSK does not exercise its option.
Under the terms of the agreement, Pharmacopeia will receive $15 million in cash payments from GSK. In addition, each drug development program pursued under the alliance will be subject to success-based milestone payments totaling up to $83 million for a successful program and a double-digit royalty.
In connection with the alliance, GSK also receives warrants to purchase Pharmacopeia stock at a 25% premium to the trailing 30-day closing price average at the commencement of the alliance.
“The Pharmacopeia relationship exemplifies a new collaborative model for GSK. Through the CEEDD we will ally GSK’s understanding of medical needs with biotech innovation to bring new medicines to patients,” said Dr Maxine Gowen, senior vice president of GSK and head of the CEEDD.