Biotica could earn up to $128 million in success-based fees per compound.
GlaxoSmithKline (GSK) signed on Biotica Technology to identify erythromycin-based macrolides in inflammatory diseases. Biotica will obtain an initial cash payment and is eligible to receive up to $128 million per compound in development, approval, and commercialization milestones.
GSK also agreed to pay tiered royalties on net sales of resulting products. Additionally, GSK made an up-front equity investment in the first closing of Biotica’s Series D financing.
The collaboration will extend for three years. Biotica will use its bioengineering technology to produce compounds that are not readily accessible via conventional medicinal chemistry approaches. GSK will apply its expertise in macrolide drug discovery to further optimize the properties of candidate drugs.