LifeMine Therapeutics, GSK Ink $70M Drug Discovery, Development Pact

LifeMine Therapeutics Inc, a drug discovery startup that uses genetically-encoded small molecules, has partnered with GlaxoSmithKline plc GSK to discover and develop drugs from fungal genomes.
GSK will bring three targets for LifeMine to run through its proprietary drug discovery platform, which scans for fungi that could be a match to create a small-molecule drug.
LifeMine will get $70 million from GSK through the deal, a sum that includes an equity investment in a $175 million funding round that has just closed.
The companies will share costs 50-50 during the discovery process and up to filing investigational new drug applications with the FDA.
Then, GSK will take over and fund all development and commercialization efforts.
“This is a transformative collaboration for LifeMine, and marks the first such agreement in genomic drug discovery from fungi, nature’s virtuoso medicinal chemists,” said Gregory Verdine, Ph.D., co-founder, chief executive officer and chief scientific officer of LifeMine.
The companies did not disclose which indications or disease areas they would explore. LifeMine has initially focused on oncology and immune modulation, however.
The deal also includes undisclosed milestones and royalties.
Price Action: GSK shares are down 0.51% at $43.01 during the market session on the last check Wednesday.