Five Prime: Option Exercise By Glaxo For License To Muscle Disease Target

(RTTNews) - Five Prime Therapeutics Inc (FPRX) said Monday that GlaxoSmithKline (GSK, GSK.L) exercised its option to obtain an exclusive, worldwide license to products containing or directed to an undisclosed muscle disease target that Five Prime discovered using its proprietary library of human extracellular proteins and target screening and discovery capabilities.

Five Prime and GSK established the collaboration in 2010 to enable the potential discovery, development and commercialization of drug targets for skeletal muscle diseases using Five Prime's protein target discovery platform.

By exercising its option, GSK will receive exclusive rights to develop and commercialize products globally, at its own cost and expense, that incorporate or are directed to the selected target.

Five Prime will receive a payment of $1.5 million in connection with the option exercise and is entitled to receive up to $122.5 million in preclinical, development and commercial-related milestone payments and royalties in the low- to mid-single-digit range on net sales of products related to the target.