ChemoCentryx receives an option payment of USD 35 million from GlaxoSmithKline for a licensing agreement
GlaxoSmithKline (GSK) has exercised its option for a licensing agreement for ChemoCentryx’ leading drug candidate Traficet-EN. GSK gains the exclusive licence to develop and commercialise Traficet-EN, a drug for the treatment of chronic inflammatory gastrointestinal conditions, including Crohn's disease. In return, ChemoCentryx receives an immediate payment of USD 35 million, as well as potential further milestone and royalties.
Traficet-EN is a drug with a novel mechanism of action. Recently-concluded, placebo-controlled PROTECT-1 trials (phase 2) indicate a high degree of efficacy among Crohn's disease patients. Traficet-EN was also tolerated well. Unlike today's common, highly-effective treatments for chronic inflammatory gastrointestinal conditions, Traficet-EN does not have to be injected, but is taken as a capsule. In addition to Traficet-EN, ChemoCentryx has two further clinical development programmes, as well as a series of pre-clinical programmes. HBM BioVentures has built up its investment in ChemoCentryx over several rounds of financing. Following an initial investment in 2001, the majority of the present CHF 17.5 million holding (7.8 % of ChemoCentryx) was invested in June 2004. In strict compliance with EVCA and IFRS valuation guidelines, despite this new agreement HBM BioVentures will not increase the book value of its investment.
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