Human Genome gets $5 million milestone from GlaxoSmithKline for diabetes drug candidate

By E. Janene Geiss

Philadelphia, Jan. 10 - Human Genome Sciences, Inc. announced Tuesday that it has received a $5 million payment from its collaborator, GlaxoSmithKline, related to Glaxo's filing of an Investigational New Drug Application to begin phase 1 clinical trials of GSK716155 (formerly known as Albugon) for potential use in the treatment of diabetes.

Human Genome said it will recognize the $5 million as revenue in the fourth quarter of 2005, according to a company news release.

The payment was made pursuant to an agreement reached in October 2004, under which Glaxo acquired exclusive worldwide rights to develop and commercialize GSK716155 (albumin-glucagon-like peptide-1, GLP-1) for all human therapeutic and prophylactic applications, the release said.

Human Genome received an upfront fee and is entitled to significant clinical development and commercial milestone payments that could amount to as much as $183 million, officials said, as well as additional milestones for other indications developed.

The company received a total of $12 million in milestones in 2005, officials said.

Human Genome said it also will receive royalties on the annual net sales of any products developed and commercialized under the agreement. The company said it is responsible manufacturing GSK716155 for phase 1 and 2 clinical trials.

"We are pleased that GSK has chosen to advance GSK716155 to clinical development. It is our hope that this drug may ultimately offer a new option in the treatment of diabetes. We view the agreement as a strong indication of the potential of our albumin-fusion technology," H. Thomas Watkins, president and chief executive officer of Human Genome, said in the release.

GSK716155 was created using Human Genome Sciences' proprietary albumin fusion technology, which involves fusing the gene that expresses human albumin to the gene that expresses a therapeutically active protein, officials said.

Research has shown that the fusion of therapeutic proteins to human albumin decreases clearance and prolongs half-life.

GSK716155 results from the genetic fusion of human albumin and GLP-1, officials said.

Human Genome is a Rockville, Md., biopharmaceutical company focused on developing, manufacturing and marketing new therapeutics with a primary focus on protein and antibody drugs.

GlaxoSmithKline is a Research Triangle Park, N.C., research-driven pharmaceutical company.

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