Neurosearch extends its alliance with Glaxo

Partnership

NeuroSearch has further extended its alliance with GlaxoSmithKline (GSK), adding more compounds to the portfolio that the partners are jointly developing.

The Danish company will receive an undisclosed upfront payment and may receive up to €109 million in milestone payments, plus sales royalties on each of the products in the expanded portfolio.

The deal follows the completion of a five-year drug discovery alliance that ran from 2003 to 2008. The collaboration will now focus on joint development of the drugs already identified and developed.

NeuroSearch could receive milestone payments from the total expanded portfolio of up to €950 million plus double-digit royalties on GSK's global sales of any marketed product. In 2009-2010, upfront payment and potential short-term milestone payments could exceed €70 million.

NeuroSearch will be responsible for the preclinical and early clinical development of products up to Phase IIa studies.

As of 1 January 2009 the expanded portfolio consists of:

• NS2359 for the treatment of depression, currently in Phase IIb development, with results from two completed Phase IIb studies and GSK's decision on PhaseIII development expected in the first half 2009.

• Five compounds in pre-clinical development and further qualified leads that are ready to advance into preclinical development.

Flemming Pedersen, CEO of NeuroSearch, said, “We are very pleased to announce the broad scope of continued collaboration with GSK following five years of successful drug discovery efforts. Our joint portfolio of drug candidates represents significant revenue potential to NeuroSearch, both short-term and long-term, and secures the basis for optimal speed and progress in the development of a large part of our drug pipeline.”