Praecis, GlaxoSmithKline form agreement to identify small molecule drug candidates

By Lisa Kerner

Erie, Pa., April 10 - Praecis Pharmaceuticals Inc. said it has entered into a two-year pilot study and option agreement with GlaxoSmithKline through its recently established Center of Excellence for External Drug Discovery.

The goal of study is to apply Praecis' DirectSelect technology to identify small molecule lead drug candidates against a diverse set of four targets selected by GlaxoSmithKline, according to a company news release.

Once Praecis identifies lead compounds that meet certain criteria against at least one of the specified targets, GlaxoSmithKline will have the exclusive option to enter into a broader strategic alliance for further discovery and development of those lead compounds.

"In developing this drug discovery technology, Praecis has overcome multiple challenges in creating and screening large libraries of molecules," senior vice president of GlaxoSmithKline and head of the Center of Excellence for External Drug Discovery said in the release.

"We look forward to exploring with Praecis the breadth of impact that this technology could have on discovering lead molecules against both standard and more challenging targets of interest to GlaxoSmithKline."

GlaxoSmithKline will purchase $500,000 of Praecis' common stock, at a price equal to the average closing lvel over a 45-day period ending April 25. Praecis will also be entitled to receive a $500,000 milestone payment when lead compounds are identified meeting certain criteria.

Praecis said its DirectSelect technology is based upon the creation of multiple, numerically large, encoded libraries of drug-like structures that can be rapidly screened to identify individual structures, or families of structures, with affinity for a macromolecular target.

GlaxoSmithKline is a pharmaceutical company based in Brentford, U.K.

Praecis is a Waltham, Mass.-based biopharmaceutical company focused on the discovery and development of novel compounds to address unmet medical needs or improve existing therapies.

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