GlaxoSmithKline (GSK) has acquired a commercial licence from Five Prime Therapeutics by exercising an option for products to treat undisclosed muscle disease.
The option is to secure an exclusive and worldwide license for products, which are developed by Five Prime through its library of human extracellular proteins and target screening and discovery capabilities.
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GSK will now secure exclusive rights to develop and commercialise drugs, across, at its own cost and expense.
In relation with the option exercise, GSK will pay around $1.5m to Five Prime.
In addition, Five Prime will be entitled to receive around $122.5m in preclinical, development and commercial-related milestone payments and royalties in the low to mid-single-digit range on net sales of products related to the target.
Five Prime Therapeutics president and CEO Lewis Rusty Williams said: "GSK has thoroughly evaluated this muscle disease target and their decision to obtain an exclusive licence further validates the strength of our protein discovery platform to identify novel targets in conditions beyond our internal focal areas of cancer and inflammatory diseases.
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By GlobalData"This novel target has the potential to result in new treatments for patients suffering from skeletal muscle disorders, many of which are not adequately treated by current therapies."
In 2010, both the companies partnered to develop and commercialise drugs for skeletal muscle diseases, using Five Prime’s protein target discovery platform.
