Wednesday, October 27, 2010

GlaxoSmithKline makes billion-dollar deal on drug - Triangle Business Journal:

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Synta, headquartered in Lexington, will receive an upfront paymengtof $80 million from Glaxo, which is headquartere in London and employs 6,000 people in the Triangle. Synts stands to earn as much as $1 billionb over time in milestonr payments if the skincancer drug, known as makes it to the markey and meets sales expectations. Some $135 million of that moneu would be doled out before regulatory while $450 million would come after approval of the drug for variouxs indications and $300 million would be based on salese thresholds.
Synta and Glaxo will sharew responsibility for developing andcommercializing STA-4783 in the United while GSK gains exclusiv e rights to develop and sell the drug internationally. STA-4783 is enteriny late-stage human clinical trials. GSK, subject to Synta's agreement, also may buy up to $45 milliob of Synta's common stock once developmentr and regulatory milestonesare met. In both companies will share development costs outside ofthe U.S., and Syntz gets double-digit, tiered royalties on net sales. Glaxop says STA-4783 becomes its 10th cancet drug in phase IIIclinical trials.
The company, which has seen its growth lag inrecent years, is trying to develop a franchises in oncology in an attempt to grab a larger shars of the lucrative market. Sharez of Glaxo (NYSE: GSK) were down 18 cents to $53.42 in mid-morningg trading Wednesday. Shares of Synta (Nasdaq: SNTA) were down 5 percenty to $9.71

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