Transaction also includes an initial $6.5 equity investment and up to $250 million in milestones for each licensed product.
Mpex Pharmaceuticals and GlaxoSmithKline are working together to develop and commercialize novel medicines for bacterial diseases. Mpex will receive $8.5 million upfront and a $6.5 million equity financing commitment. Contingent on achieving certain development, regulatory, and commercial milestones, GSK will pay up to $250 million for each product candidate. Mpex will also receive tiered royalties, which are dependent on sales achieved.
Under this worldwide agreement, GSK gains access to Mpex’ efflux pump inhibitors (EPI) and related technology for use in combination with a variety of antibiotics. The partnership will focus on the discovery and development of novel drug regimens comprising Mpex’ EPIs combined with GSK’s development-stage compounds. The companies will also investigate the combination of EPIs with marketed antibiotics.
GSK will own the rights to candidates directed at three target profiles. Mpex will be responsible for the discovery of EPI and the development of combination drugs through clinical proof of concept. The firm could deliver up to seven treatment options. After proof-of-concept trials, GSK will have the option to exclusively license each product for further development and commercialization on a worldwide basis. Mpex will retain the rights to all compounds not chosen by GSK.
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