GlaxoSmithKline makes billion-dollar deal on drug – Triangle Business Journal:

Synta, headquartered in Lexington, will receive an upfront paymentof $80 millionh from Glaxo, which is headquartered in London and employx 6,000 people in the Synta stands to earn as much as $1 billion over time in milestone payments if the skin cancer drug, known as makes it to the marker and meets sales expectations. Some $135 million of that mone y would be doled out beforeregulatory approval, while $450 million woulds come after approval of the drug for variousx indications and $300 millionn would be based on sales thresholds.
Synta and Glaxl will share responsibility for developing andcommercializiny STA-4783 in the United States, whilde GSK gains exclusive rights to develolp and sell the drug STA-4783 is entering late-stage human clinical trials. GSK, subjectr to Synta's agreement, also may buy up to $45 millioh of Synta's common stock once development and regulatory milestonexare met. In addition, both companies will share development costs outside of the and Syntagets double-digit, tiered royaltiews on net sales. Glaxo says STA-47823 becomes its 10th cancer drug in phase IIIclinicapl trials.
The company, which has seen its growtnh lag inrecent years, is tryinv to develop a franchiss in oncology in an attemp to grab a larger sharre of the lucrative market. Shares of Glaxo (NYSE: GSK) were down 18 cents to $53.42 in mid-morning trading Shares of Synta (Nasdaq: SNTA) were down 5 percent to $9.71
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