By Ben Fox Rubin
Amicus Therapeutics Inc. (FOLD) and GlaxoSmithKline PLC (GSK, GSK.LN) said they are expanding their collaboration to develop a treatment for Fabry disease, with Glaxo agreeing to buy a larger stake in the smaller pharmaceutical company.
The deal includes co-development of all current and future formulations of migalastat HCl for Fabry disease, which is a lipid storage disorder, as well as a commercialization arrangement for all future Fabry products. Amicus will have commercial rights in the U.S., while Glaxo will have rights for the rest of the world.
Glaxo also agreed to buy $18.6 million in Amicus's common stock at $6.30 a share, a 4.7% premium over Tuesday's close, raising its ownership in the company to 20%.
"Through our expanded agreement, GSK is increasing its investment in the Fabry development program and Amicus is transforming into a commercial-stage biopharmaceutical company within the U.S.," said Amicus Chief Executive John Crowley.
Amicus makes oral therapeutics known as pharmacological chaperones to treat a range of human genetic diseases.
Its shares closed Tuesday at $6.02, while Glaxo's closed at $45.44. Neither were active after hours.
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(END) Dow Jones Newswires
July 17, 2012 17:37 ET (21:37 GMT)
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