The price tag includes an up-front payment of Sfr150 million, as well as milestone payments of up to Sfr415 million if the drug is successfully developed to treat primary insomnia. Actelion will be eligible for additional milestone payments depending on the successful development of two other major indications for the drug currently undergoing clinical trials.
Terms of the deal call for Actelion to keep developing the drug for use in insomnia, with Glaxo footing 40% of those costs. Concerning other indications, the companies said they will share all costs and profits resulting from their collaboration.
Actelion shares were up 2.7% at Sfr54 in late Monday morning trading in Zurich, giving the company a market value of Sfr6.6 billion. Shares rose as much as 9.1% to Sfr57.4, posting their biggest gain in nearly a year. In London, Glaxo shares were little changed at 1,202 pence ($23.95). -
Renee CordesSee full story on
TheDeal.com
