Synta Pharmaceuticals to collaborate with GlaxoSmithKline
Synta Pharmaceuticals Corp. (Nasdaq: SNTA) said this morning that it will collaborate with GlaxoSmithKline (NYSE: GSK) to develop and commercialize STA-4783, a small-molecule, oxidative stress inducer that is entering Phase 3 clinical development for the treatment of metastatic melanoma.
Under the terms of the agreement, the companies will share responsibility for development and commercialization of STA-4783 in the United States and GlaxoSmithKline will have exclusive responsibility for development and commercialization of STA-4783 outside the United States.
Synta will receive an upfront cash payment of $80 million and will also be eligible to receive potential milestone payments of up to $135 million for events leading to approval of STA-4783 in metastatic melanoma, further development. It will also be eligible for regulatory milestones of up to $450 million across various indications and up to $300 million in potential commercial milestone payments based on achieving certain net sales thresholds.
The agreement is subject to antitrust clearance by the U.S. government under the Hart-Scott-Rodino Act.
Shares of Synta Pharmaceuticals (SNTA) slid 5.37%, or $0.55, to $9.70 out of the gate. Shares of Synta Pharmaceuticals have been trading in the range of $4.93 to $11.25 for the past 52 weeks.
