WRAL Tech Wire

GSK buying license rights for anti-smoking vaccine

GSK

Related Blog Posts

• GlaxoSmithKline secures FDA approval for its pandemic vaccine

On The Web

• GSK announcement
• Nabi Biopharmaceuticals
• GSK earnings statement
• FCC

Site Search

Get the latest news alerts: Follow LTW at Twitter

Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. — GlaxoSmithKline (NYSE: GSK) said Monday that it is licensing  a Maryland company's nicotine-addiction vaccine, now in trials, in a deal that is worth $40 million now and could go as high as $500 million.

The vaccine is NicVAX, developed by Nabi Biopharmaceuticals (NasdaqGM: NABI) of Rockville, Md. It is in Phase III trials and targets nicotine addiction and smoking relapse by smokers who have stopped.

Under the terms of the agreement, GSK will pay to Nabi an upfront non-refundable fee of $40 million at closing and will receive an option to exclusively in-license NicVAX on a worldwide basis and a license to develop follow-on next-generation nicotine vaccines using Nabi’s intellectual property.

Including the upfront payment, GSK said in a statement announcing the deal, Nabi could receive more than $500 million in option fees and regulatory, development and sales milestones for NicVAX and follow-on nicotine vaccines.

GSK said Nabi will also receive double-digit royalties on global sales of NicVAX if GSK exercises its option as well as royalties on global sales of next-generation nicotine vaccines.

"If approved, this smoking cessation vaccine technology could be a novel solution to help the millions of smokers who want to stop smoking and remain abstinent; a habit that is well documented to be very hard to stop permanently," said Jean Stephenne, president of GSK Biologicals.

Editor's Blog

The latest blog posts from our WRAL Tech Wire and WRAL editors. Read more articles…