) has been working on streamlining operations. In sync with that,
the pharma major has decided to amend its 2012 Fabry disease
BAYER A G -ADR (BAYRY): Free Stock Analysis
AMICUS THERAPT (FOLD): Free Stock Analysis
GLAXOSMITHKLINE (GSK): Free Stock Analysis
JOHNSON & JOHNS (JNJ): Free Stock Analysis
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Last year, the companies had entered into an agreement to
co-develop Fabry disease candidate, migalastat HCl. The agreement
had vested Glaxo with the rights to commercialize migalastat HCl
outside the U.S.
The companies amended the agreement a few days ago, by virtue of
which Amicus will have the sole worldwide rights to develop and
commercialize migalastat HCl (both as monotherapy and in
combination with enzyme replacement therapy/ERT) for Fabry
Complete 12- and 24-month data from the phase III study on
migalastat HCl monotherapy for Fabry disease is expected in the
first half of 2014.
Although Glaxo will not receive any upfront payment, the company
is eligible to receive regulatory and commercial milestone
payments. Glaxo will receive royalties (single-digit for
migalastat HCl in combination with ERT and mid-teens for the
monotherapy) depending on the sales of the drug in eight ex-U.S.
Glaxo will make equity investment of $3 million through private
placement in public equity transaction in Amicus.
Apart from giving up its rights to migalastat HCl, Glaxo has also
divested a portion of its holding in Aspen Pharmacare Holdings
Limited. The net proceeds from the transaction, expected to be
approximately £425 million, will not have an impact on Glaxo's
2013 core earnings.
Glaxo will continue to hold 12.4% (56.5 million shares) of the
issued share capital of Aspen. The company will use the proceeds
from the divestment for general corporate purposes.
Glaxo, a large cap pharma company, carries a Zacks Rank #3
(Hold). Some better-ranked stocks in the large cap pharma space
Johnson & Johnson
). Both carry a Zacks Rank #2 (Buy).