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Relacatib

GlaxoSmithKline plc

Drug Names(s): SB-462795, GSK462795

Description: Relacatib is a genomics-derived small molecule compound that inhibits cathepsin-K, an enzyme that appears to be implicated in osteoporosis and certain other disorders causing bone degredation.

Deal Structure: In 2002, GlaxoSmithKline initiated clinical trials of Relacatib to evaluate its potential use in the treatment of patients with osteoporosis. Relacatib was discovered by GlaxoSmithKline using Human Genome Sciences technology.

Under the terms of the 1993 agreement, Human Genome Sciences received a $1.0 million milestone payment from GlaxoSmithKline in 2002, in connection with the initiation of clinical trials of Relacatib. HGSI is entitled to receive an additional milestone payment if Relacatib moves through clinical development into registration and will receive royalties of up to 10% if the compound is successfully commercialized. In addition, HGSI has an option to co-promote up to 20% of an approved drug in North America and Europe.

In July 2012, GlaxoSmithKline and Human Genome Sciences entered into a definitive agreement under which GSK will acquire HGS for US$14.25 per share in cash. The acquisition was completed in August 2012.


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