GlaxoSmithKline's Center of Excellence for External Drug Discovery has selected osteoarthritis treatments for its second development alliance since the division was created last year.

Under a deal announced June 7, Galapagos NV will develop leads from compound screening through to Phase IIa, GSK said. Selected drugs will then go to GSK's global research and development organization.

Galapagos' existing osteoarthritis research focuses on chondrocytes, the main cell types in cartilage. The company has identified 11 novel targets and moved three of them into drug development.

The deal includes a €4 mil. ($5.1 mil.) up-front payment to Galapagos. Success-based milestone payments could add another €65 mil. ($83.2 mil.) per successful drug development program, as well as royalties on commercialized products.

GSK will have the option to commercialize compounds that result from the collaboration, with Galapagos retaining the right to develop compounds that GSK declines to market.

Those products could join the cathepsin K inhibitor relacatib for osteoporosis/osteoarthritis and bone metastases, which GSK is co-developing with Human Genome Sciences. Relacatib is currently in Phase I trials.

GSK announced the CEEDD's first drug development alliance in March. That deal with small molecule innovator Pharmacopeia gives GSK the option to conduct Phase III trials and commercialize novel candidates in broad therapeutic areas.

In March, GSK Senior VP Maxine Gowen, who heads the CEEDD, said the division aims to establish a portfolio of 50 to 60 external programs.

-Jonathan Block

GSK’s External Alliances Evolve With Galapagos Partnership

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