Human Genome Sciences, Inc. has received $7 million in payments from its collaborator, GlaxoSmithKline (GSK), related to the achievement of manufacturing and preclinical development milestones for GSK716155 (formerly known as Albugon), a drug currently in late-stage preclinical development for potential use in the treatment of diabetes.
According to a company release, the payments were made pursuant to an agreement with GSK reached in October 2004, under which GSK acquired exclusive worldwide rights to develop and commercialize GSK716155 (albumin-glucagon-like peptide-1, GLP-1) for all human therapeutic and prophylactic applications. Human Genome Sciences received an upfront fee and is entitled to significant clinical development and commercial milestone payments that could amount to as much as $183.0 million, as well as additional milestones for other indications developed. Human Genome Sciences will also receive royalties on the annual net sales of any products developed and commercialized under the agreement. Human Genome Sciences is responsible for the manufacture of GSK716155 for Phase 1 and 2 clinical trials. The milestones achieved and announced today satisfy the Company's first-year obligations to GSK under the agreement.
GSK716155 was created using Human Genome Sciences' proprietary albumin fusion technology, which involves fusing the gene that expresses human albumin to the gene that expresses a therapeutically active protein. Research has shown that the fusion of therapeutic proteins to human albumin decreases clearance and prolongs half-life. GSK716155 results from the genetic fusion of human albumin and GLP-1.