GSK in $3.3 billion deal on almorexant

Swiss biotech firm Actelion teams up with British group GlaxoSmithKline to develop and market the Swiss firm's sleep medicine almorexant, in a deal worth up to 3.3 billion Swiss francs ($3.28 billion).

GSK receives exclusive worldwide rights to co-develop and co-commercialise almorexant, Actelion said in a statement yesterday. The deal ends months of speculation about whom the Swiss firm might pick for cooperation on almorexant - the first in a new class of medicines for insomnia - which has been an enticing prospect for many large drug companies.

Actelion said it will receive an upfront payment of 150 million Swiss francs and will be eligible for additional potential milestone payments of up to 415 million francs depending on the successful development and approval of almorexant in primary insomnia.

Actelion could receive additional milestone payments, pending successful development of two other major indications for almorexant.

If all three indications were successfully registered, approved and commercialised, and exceptional sales targets met for all these indications, Actelion would be eligible to receive additional potential milestone payments of up to 2.735 billion francs, the Swiss firm said.

The Swiss biotech has said that seven of the world's top 10 drugmakers have discussed involvement in the medicine. For Actelion, the successful development of almorexant is key to reducing its dependence on its main drug Tracleer.