GlaxoSmithKline buys rights to muscle disorder drugs from FivePrime, in deal worth up to $139 million; Merck KGaA reportedly looking to sell infertili

UK drugs giant GlaxoSmithKline has entered into a collaboration with privately-held US biotechnology firm FivePrime Therapeutics to acquire exclusive rights to the latter's drug discovery platforms - specifically in the areas of sarcopenia, cachexia and other skeletal muscle disorders - in a deal worth a potential $139 million.

Under the terms of the deal, 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 customized 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 commercialization.

FivePrime will receive approximately $15 million in 2010 from an upfront fee, the purchase of equity in the firm by GSK, and payments related to the research program. In addition, the US company is eligible for additional research program payments in 2011 to 2013, and up to $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.