ChemoCentryx, Inc., a privately held focused pharmaceutical company, and Forest Laboratories, Inc. announced that the two companies have entered into a collaboration agreement to develop and commercialize novel small molecule therapeutics for autoimmune and inflammatory diseases such as rheumatoid arthritis and multiple sclerosis. The collaboration focuses on CCR1, a specific chemokine receptor involved in inflammation. The most advanced compound may be ready to enter Phase I clinical studies within the next 12 months.

Under the terms of the agreement, Forest will license on a worldwide basis small molecule development candidates discovered by ChemoCentryx, and will take the lead in the clinical development and commercialization of the drugs. ChemoCentryx will receive an upfront payment from Forest in the form of a cash licensing fee and the purchase of ChemoCentryx preferred stock. Forest will provide funding for a joint research program for up to three years.

Forest will have exclusive rights to all CCR1 antagonists developed during that period and will take the lead in clinical development. Forest will pay ChemoCentryx upfront, research and milestone payments as well as significant royalties for products arising from the collaboration. In addition, ChemoCentryx has the option to co-fund certain U.S. clinical development activities, which would increase its royalties on U.S. sales. ChemoCentryx retains the option to co-promote products to certain physician specialists in the U.S.

"We are delighted to enter into this collaboration with Forest, a committed partner with proven capabilities in the development and marketing of innovative products across diverse therapeutic categories," stated Thomas Schall, CEO of ChemoCentryx. "This collaboration will increase the rapid clinical advancement of the ChemoCentryx pipeline, providing synergies with our internal efforts and proprietary programs, as well as solidifying our progression as a development-stage company. The chemokine system is proving to be a rich target for highly potent and highly specific small molecule therapeutics."