GSK takes minority stake in Convergence Pharmaceuticals
Convergence acquires clinical stage compounds from GSK
GlaxoSmithKline (GSK) has retained an 18% minority equity stake in spin-off biotechnology company Convergence Pharmaceuticals, which has been launched with US$35.4m from a syndicate of leading European and US life science investors.
Cambridge, UK-based Convergence has issued shares to GSK worth US$4.7m in return for two clinical stage assets – target voltage-gated ion channels previously known as GSK1014802 and GSK2197944 – as well as rights to earlier stage compounds and contributions in kind.
GSK is also eligible to receive additional shares on completion of asset milestones and has taken up an observer’s role on the board of Convergence.
Convergence will be headed by Dr Clive Dix as chief executive, who is also a member of the Bioindustry Association board and its former chairman. It will focus on the development of analgesic compounds.
‘It is great to see GSK spinning out assets and creating companies in the UK,’ said Nigel Gaymond, chief executive of BIA.
‘We have seen how successful the spin-out model can be in other European countries and I certainly hope that this is one of many high profile, well funded, new companies to be spun out in this way in the UK.’