GlaxoSmithKline and Shionogi to enter global multi-product development and commercialization alliance

26-Jul-2001

Shionogi & Co., Ltd. and GlaxoSmithKline plc (GSK) today announce a plan to form a joint venture to develop and market several drugs in clinical trials, including new agents to fight against HIV and neurological disorders.

Under the terms of a letter of intent, Shionogi and GSK plan to create a joint venture (JV) that will initially have exclusive rights to develop and commercialise four compounds contributed by Shionogi and one by GSK. The JV is expected to operate in the US and in major European markets. GSK will have exclusive marketing rights in countries where the JV does not operate, excluding Japan and Taiwan, where Shionogi will retain exclusive marketing rights to all Shionogi compounds. GSK will also have co-promotion rights in those JV markets where GSK's capabilities could enhance commercialisation efforts. The final terms of the JV will be set forth in a definitive agreement.

Commenting on the plan to form the JV, Dr. Tadataka Yamada, Chairman, Research & Development, GlaxoSmithKline said,

"We are delighted with this ground-breaking alliance. Through this type of creative joint venture, we are able to provide GlaxoSmithKline with access to a promising portfolio of compounds already in clinical development while Shionogi has the opportunity to increase its global market presence. This type of innovative agreement is a signal of how we wish to partner with companies in Japan and around the world."

We are very excited to have signed a letter of intent with GlaxoSmithKline regarding this memorable event towards Shionogi's globalisation," said Mr. Motozo Shiono, President and Representative Director of Shionogi. "As Shionogi communicated in its mid-term business plan, globally developing and marketing products from our Research Laboratories is our highest priority and with GlaxoSmithKline's formidable development and marketing expertise in the HIV and CNS therapeutic areas, we believe we have taken a very significant step towards reaching our goal. It will undoubtedly build a very important platform for Shionogi's future growth and sets a great example of how Japanese companies can increase their global presence through such partnerships."

The JV will be entitled to an exclusive negotiation period regarding future Shionogi compounds for HIV infection and disorders of the central nervous system. It will also have the opportunity to augment its pipeline in other therapeutic areas.

GSK and Shionogi will make milestone payments to the JV tied to the progression of the compounds contributed by the partner company. Both companies will receive payments based on sales of their contributed compounds and will share equally in the profits of the JV.

https://www.chemeurope.com/en/news/4040/glaxosmithkline-and-shionogi-to-enter-global-multi-product-development-and-commercialization-alliance.html