GSK pulls out of FP-1039 collaboration with Five Prime

US biotech firm Five Prime Therapeutics (Nasdaq: FPRX) has revealed that, on March 9, 2016, UK pharma major GlaxoSmithKline (LSE: GSK) notified the company that it was providing 180-day notice of termination of the FP-1039 license and collaboration agreement for convenience.

This follows a decision in January to halt the development of FP-1039 in squamous non-small cell lung cancer (sqNSCLC). The US, Canada, and European rights to the FP-1039 were acquired by GSK in 2012 in a $3 billion deal to purchase Human Genome Sciences.

Five Prime plans to work with GSK to ensure completion of enrollment in the ongoing mesothelioma arm of the Phase Ib study and to transfer the asset and program back to Five Prime. The US firm says it continues to be encouraged by the progress of this Phase Ib trial. Mesothelioma could represent a potentially attractive market opportunity for a company like Five Prime.