Transaction related to antiviral and antibacterial drug development calls for a $22 million upfront payment.

Anacor Pharmaceuticals stands to earn upwards of $2 billion through a deal with GlaxoSmithKline (GSK). The company will receive $12 million in cash and a $10 million equity investment upfront from GSK for R&D work on antiviral and antibacterial drugs.

In return, GSK gains access to Anacor’s boron-based chemistry for use against selected targets. Anacor will primarily be responsible for the discovery and development of boron-containing small molecule candidates through clinical proof of concept. At this point, GSK will have an exclusive option to license each drug for further development and commercialization on a worldwide basis.

GSK may select compounds that are directed to up to four targets with the potential for at least eight product options.  Anacor is eligible to receive discovery, development, regulatory, and commercial milestones ranging from $252 million and $331 million for each. The company may also receive tiered double-digit royalties.

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