Ranbaxy will take leads beyond candidate selection into proof-of-concept studies.

Ranbaxy Laboratories gained additional development responsibilities and further financial opportunities through the expansion of its alliance with GlaxoSmithKline.

Under the original 2003 agreement, Ranbaxy conducted the optimization chemistry required to progress drug leads to the stage of candidate selection. Under the new multiyear R&D agreement, Ranbaxy will advance leads beyond candidate selection to completion of clinical proof of concept. GSK thereafter will conduct further development for each program and take resulting products through the regulatory approval process to final commercialization.

Ranbaxy could receive over $100 million in milestone payments and up to double-digit royalties on worldwide net sales. Ranbaxy will retain the right to co-commercialize the products in India. The new milestones and royalties will apply to the two programs ongoing at Ranbaxy, under the original agreement with GSK, as well as to future drug discovery programs.

GSK says the expanded alliance could lead to potential work in a range of therapeutics, including anti-infectives and metabolic, respiratory, and oncology products.

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