GSK takes up option on Five Prime respiratory targets

US biotech Five Prime Therapeutics (Nasdaq: FPRX) says that UK pharma major GlaxoSmithKline (LSE: GSK) has exercised its option to take an exclusive license to the intellectual property related to a target under the respiratory diseases research collaboration between the companies, triggering a $1.5 million license payment to Five Prime.

The news, released on Thursday, triggered a 3.65% rise to $44.29 in Five Prime shares, and the stock moved up to $44.68 on Friday.

“GSK’s decision to exercise the option to license Five Prime intellectual property with respect to a specific respiratory target further demonstrates the productivity and versatility of Five Prime’s unique platform to identify novel targets in a wide range of major diseases,” said Lewis "Rusty" Williams, president and chief executive of Five Prime, adding: “This is one of several potential targets that Five Prime has identified under the research collaboration with GSK, which have the potential to result in novel medicines for the treatment of respiratory disease.”