Glaxo signs potential $1 bln drug deal with Chroma
GlaxoSmithKline (GSK.L) has
signed a deal with Chroma Therapeutics, giving it access to the
unlisted British biotech company's experimental compounds for
inflammatory diseases such as rheumatoid arthritis.
The move boosts Glaxo's early-stage pipeline but will not
deliver products to the market for many years as Chroma's
inflammation programmes have yet to enter clinical development,
according to the company's website.
The two groups said on Tuesday that Chroma had the potential
to receive in excess of $1 billion in total milestone and option
payments from Glaxo if all four small-molecule programmes
covered by the agreement were successful.
Oxford-based Chroma will receive a significant upfront cash
payment and Glaxo will also invest in its 15 million pounds ($25
million) Series D equity financing.
Chroma's potential drugs target macrophages -- a type of
large white blood cell that plays a key role in the immune
system -- using a proprietary esterase-sensitive motif (ESM)
technology that enhances delivery.
The company's venture capital backers include Abingworth
Management, Essex Woodlands Healthcare Ventures, Gilde
Healthcare, Nomura Phase4 Ventures and the Wellcome Trust.
(Reporting by Ben Hirschler; Editing by Dan Lalor)
($1 = 0.6070 pound)
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