GSK and Pharmacopeia sign R&D accord

UK-based pharmaceutical major GlaxoSmithKline and US drugmaker Pharmacopeia say they have entered into a new drug development alliance, which will utilize the former's Center of Excellence for External Drug Discovery that was established last year (Marketletter May 30, 2005). The firms will combine research efforts with the aim of delivering clinically-validated therapeutic candidates to GSK's R&D division.

Under the terms of the agreement, Pharmacopeia will identify new active molecules, bringing them through to the clinical proof-of-concept stage. GSK has exclusive options to conduct Phase III assessments of the candidates, in addition to holding worldwide commercialization rights. Pharmacopia will receive $15.0 million in cash and is entitled to developmental milestone payments on any selected candidates up to the value of $83.0 million. GSK also received warrants to purchase the US firm's stock at a 25% permium to the trailing 30-day closing price average, at the collaboration's initiation.