Idenix and GSK Partner on HIV Treatment Drug

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Includes: GSK, IDIX
by: Eben Tessari

Idenix (NASDAQ:IDIX) and GlaxoSmithKline (NYSE:GSK) announced the execution of a license agreement granting GSK exclusive worldwide rights to IDX899.

Terms

Upfront: $34M ($17M in cash; $17M equity stake @ 6.87/share or ~17% premium to 30 day trailing ave)
Milestones: $416M
Royalties: Double digit tiered
Development: GSK assumes all responsibility and associated costs

IDX899 is a potent non-nucleoside reverse transcriptase inhibitor (NNRTI) being developed for the treatment of HIV-1. Idenix has advanced IDX899 through a Phase II proof-of-concept study in HIV-1 infected treatment-naive patients that was completed in 2008. In the proof-of-concept study, patients (n=32) receiving once-daily oral administration of IDX899 achieved mean viral load reductions of 1.8 log(10), after seven days of treatment as tested with the Roche Amplicor® 1.5 assay.

In this study, no treatment-related serious adverse events were reported and no patients discontinued. The most common adverse events observed were dyspepsia, headache and nausea; the rate of these events was similar between IDX899-treated patients and those receiving placebo. Additionally, no patterns in laboratory abnormalities between treatment groups were observed during the treatment period.