Milestone for ChemoCentryx as GSK exercises license option

UK pharma giant GlaxoSmithKline (LSE: GSK) has exercised its option to obtain an exclusive license for further development and worldwide commercialization of the investigational medicine CCX354, a potent and selective inhibitor of CCR1, a chemokine receptor that drives the recruitment of inflammatory cells into the joints of patients with rheumatoid arthritis (RA), under a collaboration accord with privately-held USA-based ChemoCentryx involving an upfront $63.5 million to the latter (The Pharma Letter September 4, 2006).

ChemoCentryx recently reported positive results from a Phase II clinical trial with CCX354 which investigated the safety, tolerability, clinical and biological activity of this compound in patients with RA.

Under the terms of the collaboration, ChemoCentryx will receive an option exercise fee of $25 million and will be eligible for further regulatory and sales milestone payments. Subject to successful development and commercialization of CCX354, ChemoCentryx will also receive double-digit royalties on net sales. GSK will now be solely responsible for funding further clinical development and commercialization for CCX354 worldwide.