FivePrime in alliance with GSK

FivePrime Therapeutics announces that it has formed a focused strategic drug discovery alliance with GlaxoSmithKline (GSK). This collaboration gives GSK exclusive access to Five Prime’s drug discovery platforms specifically in the areas of sarcopenia, cachexia and other skeletal muscle disorders.

Under the terms of the agreement, GSK will receive access to FivePrime’s comprehensive proprietary collection of secreted proteins and transmembrane receptor proteins. FivePrime will conduct high-throughput in vitro and in vivo assays customised to identify potential drug targets and drug candidates for treating skeletal muscle diseases.

GSK will have an option to exclusively license each drug target or drug candidate discovered by FivePrime from the collaboration and take on sole responsibility for additional preclinical studies, clinical development, manufacturing and worldwide commercialisation.

FivePrime will receive approximately US$15 million in 2010 from an upfront fee, the purchase of FivePrime equity by GSK, and payments related to the research program.

In addition, FivePrime is eligible for additional research program payments in 2011 to 2013, and up to US$124 million in potential option exercise fees and milestone payments, as well as tiered royalties on global net sales for each product resulting from a selected drug target or drug candidate.

“We are delighted to form this strategic alliance with GSK and harness the power of our unique extracellular proteome library and drug discovery technologies to find new drugs and drug targets for disorders of skeletal muscle,” said Lewis T “Rusty” Williams, MD, PhD, executive chairman and founder, FivePrime.

“Collaborating with GSK will direct additional resources toward accelerating the development of novel drugs for patients suffering from sarcopenia, cachexia, and other skeletal muscle disorders that are not well served today,” added Julia P Gregory, president and chief executive officer.