ViiV Healthcare inks exclusive license deal with Shionogi; files PrEP candidate

HIV specialist ViiV Healthcare, which is majority owned by GlaxoSmithKline (LSE: GSK), today announced an exclusive collaboration and license agreement with Shionogi (TYO: 4507) for S-365598, a third-generation investigational integrase strand transfer inhibitor (INSTI) with potential for use in ultra long-acting HIV regimens (regimens with dosing intervals of three months or longer).

Under the terms of the agreement, ViiV Healthcare will make an upfront payment of £20 million ($27.4 million) to Shionogi, a £15 million payment for the achievement of a clinical development milestone and royalties on net sales. The royalty levels are aligned with those in Shionogi’s existing integrase inhibitor agreements with ViiV Healthcare. Shionogi, which is a minor partner in ViiV, will contribute to development costs up to an annual maximum.

“Our 20-year relationship with Shionogi has been incredibly successful, producing what are arguably two of the most important HIV medicines of the last decade. Dolutegravir is now taken by 17 million people globally, and cabotegravir has allowed us to develop the first long-acting regimen for treatment. With today’s announcement about the in-licensing of a third integrase inhibitor from Shionogi, we will continue this collaboration and explore the potential of S-365598 to anchor ViiV Healthcare’s pipeline beyond 2030,” said ViiV’s head of R&D Dr Kimberly Smith.