Neurosearch and GSK form strategic r&d alliance
Danish biopharmaceutical company NeuroSearch and GlaxoSmithKline (GSK) have entered into a five-year r&d alliance comprising a number of research programmes within ion channels and the treatment of diseases of the central nervous system, including depression, anxiety, and schizophrenia.
Danish biopharmaceutical company NeuroSearch and GlaxoSmithKline (GSK) have entered into a five-year r&d alliance comprising a number of research programmes within ion channels and the treatment of diseases of the central nervous system, including depression, anxiety, and schizophrenia.
The new alliance combines NeuroSearch's innovative r&d and strong technology platform with GSK's research, development and commercial strength.
The option agreement gives GSK access to new drug candidates from NeuroSearch's r&d within the defined area. This includes the Phase II triple monoamine reuptake inhibitor NS2359, the Endovion programme and several other research programmes. The existing collaboration with GSK in depression disorders is integrated in the new agreement.
Under the terms of the agreement NeuroSearch will receive a total of Euro 82m in guaranteed payments. On signing the agreement, NeuroSearch will receive Euro 46.8m, consisting of Euro 29.1m in up-front and research payments and Euro 17.7m for 616,000 new NeuroSearch shares to be issued to GSK.
When GSK exercises its option in respect of the individual programmes, it will also assume responsibility for funding the project costs involved. In addition to the guaranteed payments above, NeuroSearch may receive milestones based on the continued successful development of NS2359 and any other candidates accepted by GSK. For NS2359 these payments may total €98.5m. The milestones payable by GSK for other candidates may range from Euro 32.7m to Euro 90m per candidate. NeuroSearch will also receive royalties on sales of successfully launched compounds. If GSK does not wish to exercise its options, NeuroSearch is free to develop the product itself or with another partner.
Tadataka Yamada, chairman, research and development at GSK, commented: "Diseases of the central nervous system are particularly debilitating and repre-sent a massive unmet medical need. Combining the skills and resources of GSK and NeuroSearch will accelerate and augment our current efforts to make effective new treatments available to patients as quickly as possible.'