By Lisa Kerner
Charlotte, N.C., Aug. 24 - ChemoCentryx, Inc. and GlaxoSmithKline, Inc. formed a strategic alliance to discover, develop and market novel medicines targeting four chemokine and chemoattractant receptors for the treatment of inflammatory disorders.
The receptors include Traficet-EN, currently in late-stage development for the treatment of inflammatory bowel disease (IBD), according to a news release.
Traficet-EN controls the inappropriate inflammatory response by targeting the CCR9 chemokine receptor.
Under the agreement, ChemoCentryx will be responsible for the discovery and development of small molecule drug candidates through clinical proof of concept. The company will receive an upfront payment of $63.5 million made up of cash and a series D financing.
ChemoCentryx said it will also receive research funding, double-digit royalties and possible milestone payments up to $1.5 billion across six product options on the four targets.
The company said upon an initial public offering by ChemoCentryx, GlaxoSmithKline will invest in the company's common stock.
For its part, GlaxoSmithKline will have exclusive options to license each product for development and commercialization worldwide.
ChemoCentryx will retain the option to co-develop and co-promote Traficet-EN in IBD to certain U.S. physician specialists. Currently, the company is conducting the Protect-1 Trial for Traficet-EN in patients with moderate-to-severe Crohn's disease, a common form of IBD.
The alliance will be conducted through GlaxoSmithKline's Center of Excellence for External Drug Discovery.
ChemoCentryx also recently completed a series C financing, resulting in gross proceeds of $17.7 million.
Participating investors included Jennison Associates, HBM BioVentures, Orbimed Advisors, Techne Corp., Alta Partners and GIMV.
Credit Suisse Securities (USA), LLC advised the company on the private placement financing.
"Between this and other financing vehicles, combined with the upfront payments from the GSK alliance, ChemoCentryx has secured nearly $90.0 million in new money in 2006 so far," president and chief executive officer Thomas J. Schall said in the release.
GlaxoSmithKline is a London-based pharmaceutical company.
ChemoCentryx is a Mountain View, Calif., clinical-stage biopharmaceutical company focused on orally administered therapeutics to treat autoimmune diseases, inflammatory disorders and cancer.
| Issuer: | ChemoCentryx, Inc.
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| Issue: | Series C financing
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| Amount: | $17.7 million
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| Investors: | Included Jennison Associates, HBM BioVentures, Orbimed Advisors, Techne Corp., Alta Partners, GIMV
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| Announcement date: | Aug. 24
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