GSK, Valeant ink $820M epilepsy deal

Valeant Pharmaceuticals will pocket a $125 million upfront fee from GlaxoSmithKline in exchange for a collaboration deal on the epilepsy drug retigabine [1]. Altogether the pact could be worth up to $820 million if the drug achieves all of its milestones. Valeant retains up to half of the profits from any sales in the U.S. and several other countries. Glaxo also gains the rights to VRX698 and the other back-up compounds from the potassium channel opener discovery program.

Retigabine has already completed two Phase III trials and is in a study for post-herpetic neuralgia, a painful complication of shingles. The developers say they will file for European approval in early 2009.

"There is a significant need for novel anti-epileptic drugs, as almost one-third of patients with epilepsy continue to experience seizures despite treatment with currently available medications," commented Steve Stefano, senior vice president, GSK U.S. NeuroHealth Division. "We believe that retigabine could potentially play a significant role in improving the management of epilepsy and is a welcome addition to GSK's portfolio."

- check out the release [2]

Related Articles:
Valeant chops workforce in restructuring [3]
Valeant authorizes $100 million stock repurchase [4]
Valeant shares jump on epilepsy trial data [1]
Witty: Diversifying and derisking GSK [5]