GlaxoSmithKline in $1.5 billion collaboration deal

GlaxoSmithKline announced a deal on Thursday with the privately held drug research firm ChemoCentryx to discover, develop and market novel medicines for a variety of inflammatory disorders. As part of the deal ChemoCentryx will receive an upfront payment of $63.5 million and will be eligible to earn milestone payments up to, potentially, $1.5 billion. Under the agreement, Mountain View, CA-based ChemoCentryx will also get a double digit royalty percentage on collaboration product sales, and an investment from GlaxoSmithKline should the company go public. ChemoCentryx's Traficet-EN, which is in late stage development for the treatment of inflammatory bowel disease, is included in the agreement.