Astex and GlaxoSmithKline in drug discovery alliance

Cambridge, UK-based Astex Therapeutics has signed an agreement with GlaxoSmithKline (GSK) that could result in it receiving payments of more than £300m (US$500m).

Under the deal Astex will apply its Pyramid fragment chemistry technology to multiple targets identified by GSK to identify and develop new candidate drugs. Astex will handle the initial fragment screening and lead discovery, while GSK will be responsible for optimisation and commercialisation of the identified lead compounds. GSK will also complete pre-clinical and clinical development of all products arising from the collaboration.

GSK will make an upfront payment and equity investment in Astex of £20m (US$33m). Total payments under the collaboration, excluding royalties, could reach more than £300m ($500 million), including non-clinical milestones totalling more than £37m (US$61m.

Astex is a UK-based biotechnology company that discovers and develops novel small molecule therapeutics. The company has built a pipeline of five molecularly-targeted oncology drugs using Pyramid, of which three are currently being tested in clinical trials and two are in pre-clinical development.