The UK's GlaxoSmithKline has forged a wide-ranging development and marketing pact with India's Dr. Reddy's at the same time it applied the coup de grace to its deal with Synta Pharmaceuticals for the troubled elesclomol program.
Glaxo had paid Synta $130 million so far under their development agreement and would have paid out $880 million more for a successful series of trials for the cancer drug. But safety concerns torpedoed a late-stage trial for metastatic melanoma last year after researchers recorded more deaths in the experimental drug arm than among the placebo group. The trial failure forced Synta to axe 90 jobs two months ago and cut its stock price in half.
Synta CEO Safi R. Bahcall says the company is reviewing data and considering its options for the program. "We expect to report more on additional data and plans for the program later this year." Synta may pay GSK a low single-digit royalty on any potential future sales of elesclomol.
Glaxo, meanwhile, is gaining access to Dr. Reddy's extensive pipeline and drug portfolio that covers diseases such as cardiovascular, diabetes, oncology, gastroenterology and pain management. Glaxo will distribute drugs manufactured by Dr. Reddy's in Africa, Asia, Latin America and other regions. No financial details were disclosed.
- see the FiercePharma article on Dr. Reddy's
- read the report from the Wall Street Journal
- here's the release from Synta
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