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Agreements

Date: 2012-04-17

Type of information: R&D agreement

Compound:

Company: GSK (UK) Five Prime Therapeutics (USA)

Therapeutic area: Respiratory diseases - Inflammatory diseases - Allergic diseases

Type agreement:

R&D

Action mechanism:

Disease: refractory asthma
chronic obstructive pulmonary disease (COPD)

Details:

Five Prime Therapeutics has entered into its second strategic drug discovery alliance with GSK within two years. This new collaboration gives GSK exclusive access to FivePrime’s drug discovery platforms in up to six programs to identify first-in-class agents and new mechanisms relevant to refractory asthma and chronic obstructive pulmonary disease (COPD). Under the terms of the agreement, GSK will receive access to FivePrime’s comprehensive, proprietary collection of functional human secreted proteins and transmembrane receptor proteins and FivePrime will apply its technology platforms to identify and validate potential drug targets and drug candidates. GSK has an option to exclusively license selected targets discovered by FivePrime in the collaboration. For a majority of licensed targets, GSK would take on sole responsibility for additional preclinical studies, clinical development, manufacturing and worldwide commercialization of products. For a limited number of GSK-licensed targets, FivePrime would have the opportunity to advance biologic products through human proof-of-mechanism clinical studies, after which GSK would have an exclusive option to exclusively license global rights for such products in exchange for enhanced financial payments to FivePrime.

Financial terms:

FivePrime would be eligible to receive up to $30 million over the next four years from an upfront fee, the purchase of FivePrime equity by GSK, research funding, and option payments related to the research program. In addition, in the event that GSK licenses a candidate after FivePrime has developed such candidate through the proof-of-mechanism stage, FivePrime would be eligible for up to $193.5 million in potential option exercise fees and milestone payments, as well as tiered royalties on global net sales for each product resulting from a selected drug target.

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