SuperGen and GSK team up to discover and develop cancer therapeutics based on epigenetic targets

SuperGen, Inc. (NASDAQ:SUPG) and GlaxoSmithKline (NYSE:GSK) have entered into a multi-year collaboration to discover and develop cancer therapeutics based on epigenetic targets. Epigenetics refers to the regulation of genes with mechanisms other than changes to the underlying DNA sequence. Epigenetic processes are widely believed to play a central role in the development and progression of almost all cancers.

Under the terms of the deal, SuperGen will progress candidate compounds through to early clinical proof of concept. GlaxoSmithKline will then have the right to exercise an option to develop further and commercialize resulting products on a global basis.

In connection with the transaction, SuperGen will receive $5 million upfront, inclusive of a $3 million common stock investment, priced at a premium to market. Total potential development and commercialization milestones payable to SuperGen could exceed $375 million, in addition to the potential for tiered royalties into double digit magnitudes, payable on net sales of any resulting products.

“We are excited to be working with GlaxoSmithKline, a company that has demonstrated a significant global commitment to bringing novel cancer therapeutics to patients,” said Dr. James S.J. Manuso, Chairman, President and CEO of SuperGen. “We believe this collaboration is a clear validation of our discovery platform, core expertise and capabilities.”