Boston, MA 06/04/2014 (wallstreetpr) – Developer and manufacturer of global healthcare products, Glaxo SmithKline plc (ADR) (NYSE:GSK) has struck a deal with biotechnology and privately-held company, Adaptimmune, for the development of a drug for cancer.
Cancer Drug
Glaxo SmithKline’s deal with Adaptimmune is reportedly worth over $350 million that is spread over a period of seven years if the effort of the private company turns to be fruitful and upon exercising all options apart from meeting certain milestones. The agreement between the two also includes royalties, and further payments.
The alliance comes after Glaxo SmithKline struck a deal with Novartis AG (ADR) (NYSE:NVS) more than a month ago to divest its oncology drugs for approximately $16 billion. The latest agreement suggests the continued interest level of the United Kingdom’s biggest drug maker towards cancer research.
Both the companies would work towards cell-based approach as a substitute to immunotherapies that are targeted towards proteins known as PD-1 and PD-L1. The agreement allows Glaxo SmithKline to remain in cancer immunotherapy work. However, whether the Britain’s leading drug manufacturer will take to commercialization of any drugs remains open. This is because of the fact that Glaxo SmithKline sold Oncology drugs and a final call will likely to be taken in the future probably on mutual consultations.
Management Speaks
Glaxo SmithKline plc (ADR) (NYSE:GSK) vice president of oncology research and development Axel Hoos said that the combination of capabilities provides an opening for considerable advancement in the usage of the body’s immune system with a view to fight cancer. He also reportedly viewed the agreement more as a research and development one.
Novartis Deal
The latest development assumes significance in the wake of Glaxo SmithKline agreeing to divest oncology drugs to Novartis AG for $16 billion in April. In an asset swap agreement, Novartis AG (ADR) (NYSE:NVS) had agreed to give its vaccine business for $7.1 billion to the United Kingdom’s drug maker. Glaxo SmithKline plc (ADR) (NYSE:GSK) has reportedly not ruled out any further development pacts in the oncology drugs segment.
