Actelion sells GSK almorexant rights

Source: Healthcare Digital

Date :14/07/2008 09:17:01

Actelion has sold GlaxoSmithKline Plc worldwide development and marketing rights to an experimental sleep disorder pill for CHF150 million.

Switzerland's biggest biotechnology firm will be eligible for milestone payments of up to CHF415 million if almorexant is successfully developed to treat primary insomnia.

Under the terms of the agreement, Actelion will continue to develop almorexant for use in insomnia, with GSK contributing 40 percent of the cost.

Jean-Paul Clozel, MD and chief executive officer of Actelion said the alliance will allow the companies to create significant value by expanding clinical development of the drug beyond primary insomnia.

Actelion said almorexant will also be studied in other orexin-related disorders.

The company initiated Phase III development for the drug at the end of 2007.