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GlaxoSmithKline could pay Vertex $405m

Date published: 15/12/2005

GlaxoSmithKline (GSK) has agreed to pay the US firm Vertex Pharmaceuticals up to $405 million to develop and commercialise treatment for inflammatory and nerve pain. As a part of the worldwide agreement Vertex will receive a $20 million up-front payment and could get up to an additional $385 million in development and sales threshold milestone payments for the drug VX-409.

GSK has also agreed to pay royalties based on annual sales. Joshua Boger, chairman, president and CEO of Vertex said: "GlaxoSmithKline is a leader in the development of new treatments for chronic and acute pain, and we are pleased to join with GSK to develop and commercialise VX-409 for the treatment of a variety of pain indications

"VX-409 may have the potential to change the future management of pain, based on the clinical confirmation of the compound's profile."

The global market for prescription drug sales for the treatment and management of pain was worth more than $20 billion in 2004, and is projected to grow at an estimated ten per cent annually until 2008.

It is planned for the drug to commence human testing in early 2007.

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