02.07.07
Ranbaxy Laboratories Ltd. has signed a new, multiyear R&D agreement with GlaxoSmithKline, expanding the terms of their strategic alliance established in 2003. The expanded alliance includes GSK's therapeutics of interest, such as anti-infectives, metabolic, respiratory and oncology products.
Under the original agreement, Ranbaxy conducted the optimization chemistry for progressing drug leads to the stage of candidate selection. Under the new agreement, Ranbaxy will advance leads beyond candidate selection to completion of clinical proof of concept. GSK will then conduct further clinical development for each program through to commercialization. Ranbaxy could receive more than $100 million in milestone payments for any products subsequently launched by GSK, as well as royalties on sales. Ranbaxy will retain the right to co-commercialize the products in India. The milestones and royalties will apply to future drug discovery programs as well as Ranbaxy's two current programs under the original GSK agreement.
Malvinder Mohan Singh, chief executive officer, Ranbaxy, said, "This is a great moment for our scientists. The agreement presents a unique opportunity to demonstrate the India-centric advantages of high quality R&D to deliver value at the cutting edge. I believe the arrangement with GSK is path-breaking and acknowledges the higher level of R&D maturity prevalent today in our state-of-the art labs in India."
Maxine Gowen, senior vice president, Center of Excellence for External Drug Discovery (CEEDD), GSK, said, "This expanded agreement builds on the success of the existing collaboration and furthers our CEEDD strategy of building a strong pipeline through to clinical Proof of Concept via external R&D collaborations."
Under the original agreement, Ranbaxy conducted the optimization chemistry for progressing drug leads to the stage of candidate selection. Under the new agreement, Ranbaxy will advance leads beyond candidate selection to completion of clinical proof of concept. GSK will then conduct further clinical development for each program through to commercialization. Ranbaxy could receive more than $100 million in milestone payments for any products subsequently launched by GSK, as well as royalties on sales. Ranbaxy will retain the right to co-commercialize the products in India. The milestones and royalties will apply to future drug discovery programs as well as Ranbaxy's two current programs under the original GSK agreement.
Malvinder Mohan Singh, chief executive officer, Ranbaxy, said, "This is a great moment for our scientists. The agreement presents a unique opportunity to demonstrate the India-centric advantages of high quality R&D to deliver value at the cutting edge. I believe the arrangement with GSK is path-breaking and acknowledges the higher level of R&D maturity prevalent today in our state-of-the art labs in India."
Maxine Gowen, senior vice president, Center of Excellence for External Drug Discovery (CEEDD), GSK, said, "This expanded agreement builds on the success of the existing collaboration and furthers our CEEDD strategy of building a strong pipeline through to clinical Proof of Concept via external R&D collaborations."