23andMe collaboration with GSK extended

US consumer genetics and research company 23andMe Holding (Nasdaq: ME) closed own 6.6% at $4.84 yesterday, despite providing a positive update on its collaboration with UK pharma major GlaxoSmithKline (LSE: GSK).

GSK has elected to exercise its option to extend the exclusive target discovery period of the ongoing collaboration with 23andMe for an additional year to July 2023. 23andMe will receive a one-time payment of $50 million to extend the period. In addition, 23andMe has elected to take a royalty option on its joint immuno-oncology antibody collaboration program with GSK targeting CD96 (GSK6097608, aka GSK’608), currently in Phase I studies. GSK will be solely responsible for GSK’608’s subsequent development in later-stage clinical trials, including full development costs moving forward.

“The collaboration with GSK has been very productive. In less than four years, under this collaboration, we have identified over 40 therapeutic programs and have advanced an immuno- oncology antibody targeting CD96 into clinical development,” said Kenneth Hillan, head of therapeutics at 23andMe, adding: “GSK’s decision to extend the exclusive target discovery period of our collaboration for an additional year demonstrates the enthusiasm for our collaboration and the value our database provides for identifying targets and advancing new medicines based on human genetics.”