Pharmacopeia and GlaxoSmithKline have entered a drug discovery and development alliance. Pharmacopeia and GSK–through its recently established Center of Excellence for External Drug Discovery (CEEDD)–will collaborate to deliver clinically validated therapeutic candidates to GSK’s global R&D organization.

The goal of the alliance is for Pharmacopeia to discover active molecules and bring them to clinical proof of concept, yielding novel candidates in broad therapeutic areas. GSK will have exclusive options to conduct Phase III trials and to commercialize products from the collaboration on a worldwide basis. Pharmacopeia will retain rights to programs for which GSK does not exercise its option.

Under the terms of the agreement, Pharmacopeia will receive $15 million in cash payments from GSK. Also, each drug development program pursued under the alliance will be subject to success-based milestone payments totaling as much as $83 million for a successful program and royalties.