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Gilead Sciences, Inc.

Drug Names(s): Adefovir Dipivoxil, GS 840

Description: Hepsera (Adefovir dipivoxil) is a diester prodrug of adefovir, which is an acyclic nucleotide analog of adenosine monophosphate. Adefovir is phosphorylated to the active metabolite, adefovir diphosphate, by cellular kinases. Adefovir diphosphate inhibits HBV DNA polymerase (reverse transcriptase) by competing with the natural substrate deoxyadenosine triphosphate and by causing DNA chain termination after its incorporation into viral DNA.

Deal Structure: In April 2002, Gilead and GlaxoSmithKline (GSK) entered into a collaborative agreement for the commercialization of Hepsera (adefovir dipivoxil) in Asia, Latin America and other select territories. Under the agreement, GSK received exclusive rights to commercialize Hepsera (adefovir dipivoxil), Gilead's investigational antiviral for chronic hepatitis B, in the covered territories.

Gilead will retain rights to Hepsera (adefovir dipivoxil) in the United States, Canada, Eastern and Western Europe, Australia and New Zealand. As part of this collaboration, GSK will have full responsibility for development of the drug in all countries outside of the Gilead territories. GSK paid Gilead an up-front licensing fee of $10 million, and Gilead is entitled to receive additional cash payments of up to $30 million upon achievements of certain milestones. Upon successful commercialization of Hepsera (adefovir dipivoxil) in the covered markets, GSK will pay Gilead royalty payments on net sales of...See full deal structure in Biomedtracker

Partners: GlaxoSmithKline plc

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