GlaxoSmithKline in $230 million deal with Amicus for global rights to Ph III Fabry disease drug Amigal

In a second foray into the rare diseases sector in a matter of weeks, GlaxoSmithKline (LSE: GSK) has entered into an agreement with USA-based Amicus Therapeutics (Nasdaq: FOLD) to develop and commercialize Amigal (migalastat HCl), currently in Phase III development for the treatment of Fabry disease, a rare inherited disorder. Following the announcement last Friday, Amicus' shares jumped nearly 8% to $4.26 in morning trading.

Under the terms of the deal, in return for an upfront payment $30 million, the UK pharma giant will receive an exclusive worldwide license to develop, manufacture and commercialize Amigal. GSK will also pay around $170 million on the successful achievement of development and commercialization milestones, as well as tiered double-digit royalties on global sales of migalastat.

Additionally, as part of the accord, GSK and Amicus intend to advance clinical studies exploring the co-administration of migalastat with enzyme replacement therapy (ERT) for the treatment of Fabry disease. The two companies will jointly fund development costs in accordance with an agreed upon development plan.