Vertex could receive up to $405 million under VX-409 development deal with GlaxoSmithKline

By Angela McDaniels

Seattle, Dec. 13 - Vertex Pharmaceuticals Inc. said it has entered into a new agreement worth up to $405 million with GlaxoSmithKline Inc. to develop and commercialize VX-409, Vertex's subtype selective sodium channel modulator for the treatment of pain.

Under the terms of the agreement, GlaxoSmithKline will have the exclusive right and license to develop and commercialize VX-409 and back-up compounds worldwide.

Vertex will receive a $20 million up-front payment and could receive up to an additional $385 million in development and sales threshold milestone payments. GlaxoSmithKline will also pay Vertex royalties on annual net sales.

Phase 1 clinical development of VX-409 is expected to begin in early 2007, Vertex said.

"This is another example of GlaxoSmithKline's commitment to invest in external opportunities which complement our existing disease area expertise and maximize our development of innovative and best-in-class medicines to address unmet medical needs in key clinical areas," said Jackie Hunter, GlaxoSmithKline's senior vice president of neurology and GI, in a company news release.

VX-409 is the first of a new class of agents targeting specific pain signals in nerve cells, the company said. Specific sodium channels are involved in transmitting sensory input, including the transmission of pain signals to the central nervous system, making them attractive targets for new pain treatments.

Worldwide prescription drug sales for the treatment and management of pain were more than $20 billion in 2004 and are projected to grow at an estimated 10% annually through 2008, the company said.

Vertex is a biotechnology company based in Cambridge, Mass., that develops small molecule drugs for serious diseases.

GlaxoSmithKline is a pharmaceutical company with U.S. operations in Philadelphia and Research Triangle Park, N.C.

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