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news.GlaxoSmithKline (GSK) has acquired a 18% minority equity stake in Convergence Pharmaceuticals, a new biotechnology company that will focus on the development of analgesic compounds.
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Convergence Pharmaceuticals has recently raised $35.4m in Series A financing from a syndicate of European and US life science investors.
Under the terms of the agreement, Convergence Pharmaceuticals has acquired two clinical stage assets from GSK together with rights to certain earlier stage compounds and contributions in kind.
In return, Convergence Pharmaceuticals has issued shares to GSK to the value of $4.7m.
The two clinical stage compounds, formerly GSK1014802 and GSK2197944, target voltage-gated ion channels.
GSK will also be eligible to receive additional shares on completion of asset milestones. In addition, GSK has taken up an observer role on the board of Convergence Pharmaceuticals.