GlaxoSmithKline has exercised its option to obtain an exclusive worldwide license to further develop and commercialize ChemoCentryx’s investigational drug CCX354 for the treatment of rheumatoid arthritis (RA). ChemoCentryx recently reported positive results from a Phase II trial investigating the safety, tolerability, clinical and biological activity of CCX354 in patients with RA.

ChemoCentryx will receive an option exercise fee of $25 million and will be eligible for further regulatory and sales milestone payments, as well as royalties on sales. GSK will be solely responsible for funding further clinical development and commercialization for CCX354 worldwide.

“This announcement is a key milestone for ChemoCentryx that further validates our ability to advance new medicines from drug discovery through clinical development,” said Thomas J. Schall, Ph.D., president and chief executive officer of ChemoCentryx. “Furthermore, the exercise fee associated with this agreement provides additional financial flexibility to our already strong balance sheet. GSK's global reach and financial commitment will be invaluable to the advancement of CCX354 through the rest of its development.”