GlaxoSmithKline in up to $650 deal for Epizyme epigenetic enzymes

Privately-held US biotech startup Epizyme has agreed a worldwide strategic alliance with UK pharma giant GlaxoSmithKline (LSE: GSK) to discover, develop and market novel small-molecule therapeutics targeting histone methyltransferases (HMTs), an important class of epigenetic enzymes, for the treatment of cancer and other diseases, in a deal that could earn the Cambridge, Massachusetts-based firm as much as $650 million.

Under the terms of the agreement, Epizyme will receive an upfront $20 million, as well as research funding. It is also eligible to receive more than $630 million in total milestone payments if medicines are commercialized for all targets in the collaboration. Additionally, Epizyme would get up to double-digit royalties on net sales of products resulting from the alliance.

For each target in the collaboration, Epizyme will be primarily responsible for research up to development candidate selection, and GSK will be solely responsible for development and commercialization. This alliance leverages Epizyme’s unique HMT discovery platform, including its proprietary chemical library, expertise and intellectual property, to discover and develop HMT therapeutics against the set of targets to be included in the collaboration.