Neurosearch, Glaxo Expand Drug Discovery Alliance

Copenhagen - Neurosearch AS and GlaxoSmithKline PLC have expanded the scope of a five-year strategic alliance the two companies forged in 2003, which was set up to investigate the Danish company's experimental central nervous system (CNS) and ion channel programmes.

The alliance has now been extended to cover the Danish group's entire ion channel platform, including non CNS areas.

The programmes are being run by Glaxo's 'Centre of Excellence of External Drug Discovery', which the pharma giant set up to facilitate the search for new drugs from outside its own laboratories.

Maxine Gowen, senior vice president of Glaxo's external drug discovery unit said the company has been 'very pleased' with the alliance so far.

'We want to fully explore the potential of NeuroSearch's unique ion channel platform across multiple therapeutic areas,' she said.

A new equity structure has also been set up, under which NeuroSearch can sell its shares at market price to the British pharma giant for an amount up to 30 mln eur (223 mln dkr).

The sale can only take place if the alliance produces six so-called 'investigational new drugs' (IND). Drug makers submit INDs to medicine regulators, asking for permission to begin testing a new drug in humans for the first time.

The two companies have also changed the distribution of work. For certain programmes the Danish company will be responsible for the early stage pre-clinical and clinical work, while Glaxo will take over late-stage development, production and marketing.

In those cases milestone payments to NeuroSearch will commence from phase I.

For products where NeuroSearch completes development until phase IIa, the company will receive 109 mln eur (812 mln dkr) in development milestones and double digit royalties on net sales.

SOURCE: Neurosearch AS and GlaxoSmithKline PLC