GlycoMimetics could earn $340 million from Pfizer in rare disease drug licensing deal

Global drugs behemoth Pfizer (NYSE: PFE) has made another foray into the rare disease therapy sector, negotiating an exclusive worldwide rights to US privately-held biotech firm GlycoMimetics’ investigational compound GMI-1070. The compound is a pan-selectin antagonist currently in Phase II development for the treatment of vaso-occlusive crisis associated with sickle cell disease.

The potential value of the deal for GlycoMimetics is around $340 million, including an undisclosed upfront payment as well as development, regulatory and commercial milestones. GlycoMimetics is also eligible for royalties on any sales. GMI-1070 has received Orphan Drug and Fast Track status from the US Food and Drug Administration.

Under the terms of the accord, Pfizer will receive an exclusive worldwide license to GMI-1070 for vaso-occlusive crisis associated with sickle cell disease and for other diseases for which the drug candidate may be developed. GlycoMimetics will remain responsible for completion of the ongoing Phase II trial under Pfizer’s oversight, and Pfizer will then assume all further development and commercialization responsibilities.