PRINCETON, N.J., Nov. 27 Pharmacopeia(Nasdaq: PCOP), an innovator in the discovery and development of novel smallmolecule therapeutics, announced today that it has identified two new leadcompounds for advancement in its alliance with GlaxoSmithKline (NYSE: GSK),through its collaboration with the Center of Excellence for External DrugDiscovery (CEEDD). The first of the lead compounds forms the basis of a newlead optimization program focused on identifying a treatment for respiratorydisease. The other newly identified lead compound is the second from a programin inflammatory pain. As a result of the identification of these new leadcompounds, Pharmacopeia will receive milestone payments totaling $1 millionfrom GSK.
Under the terms of the companies' collaboration, Pharmacopeia has received$10 million from GSK in connection with early discovery activities and isentitled to an additional $5 million payment upon the completion of additionalearly discovery activities. Pharmacopeia is also entitled to success-basedmilestone payments totaling up to $83 million per program and potentiallydouble-digit royalties on the sales of any product commercialized by GSK underthe multi-program alliance. Should GSK decline its option to complete pivotaltrials of alliance programs, Pharmacopeia may independently pursue them,subject to its obligations to GSK under the agreement.
"With the identification of these two compounds, our collaboration has nowidentified a total of three new leads this year," said Hugh Cowley, SeniorVice President of GSK and head of the CEEDD at GSK. "We are extremely pleasedto see the continued rapid and impressive achievements of the team drivingthis successful collaboration."
"Since entering into this collaboration just over 18 months ago, we haveadvanced multiple programs focusing on compelling targets toward developmentcandidates," said David Floyd, Ph.D., Executive Vice President and ChiefScientific Officer of Pharmacopeia "We are very pleased that progress withinthe collaboration exceeds our initial estimates and that compounds are comingfrom multiple programs in multiple therapeutic areas. We're particularly happyto have added a second lead to our ongoing pain program as this significantlyincreases its chances of overall success."
About The CEEDD
GlaxoSmithKline is enhancing the way it discovers and develops drugs bycreating a small dedicated team who will feed the GSK pipeline solely throughthe efforts of its external alliances. The CEEDD (Center of Excellence forExternal Drug Discovery) was formed as further validation of GSK's strategy tocreate small, independent and accountable R&D teams (Centers of Excellence forDrug Discovery or CEDDs). In essence, the CEEDD will 'virtualize' a portion ofthe GSK pipeline; namely, from Target to Clinical Proof of Concept, by formingmultiple risk-sharing/reward-sharing alliances. Capitalizing on the speed andefficiency of its collaborators will allow GSK to deliver pharmaceuticalsproducts faster to patients.
Pharmacopeia is a clinical development stage biopharmaceutical companydedicated to discovering and developing novel small molecule therapeutics toaddress significant medical needs. The company has a broad portfolio ofclinical and preclinical candidates under development internally or bypartners including seven clinical compounds in Phase 2 or Phase 1 developmentaddressing multiple indications including hypertension, diabetic nephropathy,muscle wasting, inflammation and respiratory disease. The company isleveraging its fully integrated drug discovery platform to sustain the growthof its development pipeline. Pharmacopeia has established strategic agreementswith major pharmaceutical and biotechnology companies, including Bristol-MyersSquibb, Cephalon, GlaxoSmithKline, Organon, Schering-Plough, and WyethPharmaceuticals. For more information plea