SuperGen could earn $375 million from GSK deal on novel epigenetic therapeutics

California, USA-based SuperGen has entered into a multi-year collaboration with UK drugs giant GlaxoSmithKline to discover and develop cancer therapeutics based on epigenetic targets. Epigenetic processes are widely believed to play a central role in the development and progression of almost all cancers.

Under the terms of the deal, SuperGen will progress candidate compounds through to early clinical proof-of-concept. GSK will then have the right to exercise an option to develop further and commercialize resulting products on a global basis, and take those compounds through the US Food and Drug Administration.

In connection with the transaction, SuperGen will receive $5 million upfront, inclusive of a $3 million common stock investment, priced at a premium to market. Total potential development and commercialization milestones payable to SuperGen could exceed $375 million, in addition to the potential for tiered royalties into double digit magnitudes, payable on net sales of any resulting products.