GSK and Archemix to develop aptamers to treat inflammatory diseases

GlaxoSmithKline and biotechnology company Archemix are to work together to develop aptamer therapeutics to treat inflammatory diseases, such as rheumatoid arthritis and inflammatory bowel disease.

Aptamers are synthetically derived oligonucleotides, or short nucleic acid sequences, that bind to proteins with high affinity and specificity.

Under the terms of the agreement, Archemix will receive $27.5m in upfront payments from GSK, including a $6.5m equity investment by GSK in the company. Archemix could also receive up to $200m in payments for each of the seven aptamer therapeutics which may be developed as part of the alliance. Archemix would also receive tiered royalties on worldwide sales of products that may result from the alliance.

"We are very excited about this collaboration with GSK and we look forward to expanding our efforts in inflammation where aptamers could offer novel options to treat disease," said Errol DeSouza, president and chief executive of Archemix.

Archemix will be responsible for the development of the aptamer therapeutics through completion of clinical proof of mechanism, unless GSK chooses to exercise its option earlier. After exercise of the option, GSK will have an exclusive licence to drug product candidates developed under each programme by Archemix for the relevant aptamer target for further development and commercialisation on a worldwide basis. Archemix will have the right to further develop and commercialise any aptamer therapeutics that GSK chooses not to develop or commercialise.

Archemix announced in November 2008 that it was to merge with NitroMed in an all-share transaction, subject to shareholder approval, consummation of the sale of NitroMed's BiDil and BiDil XR drug business and other conditions. As a result of the $27.5m in upfront payments received from GSK, Archemix now estimates that cash and cash equivalents for the combined company at the closing of the merger will be approximately $78-88m.