IDIX 899 Milestone payment
On April 23, 2010, ViiV Healthcare Company (“ViiV”), successor in interest to SmithKline Beecham Corporation, doing business as GlaxoSmithKline (“GSK”), notified Idenix Pharmaceuticals, Inc. (the “Company”) that an operational preclinical milestone triggering a $6.5 million payment from GSK with respect to IDX899, now referred to as GSK2248761, had been achieved by the Company pursuant to the License Agreement (defined below) between ViiV and the Company. The Company expects to receive the milestone payment from ViiV in May 2010.
On February 4, 2009, the Company entered into a license agreement (the “License Agreement”) with GSK, whereby the Company granted GSK an exclusive license to develop, manufacture and commercialize certain non-nucleoside reverse transcriptase inhibitor compounds claimed in certain patents and patent applications owned or controlled by the Company, including GSK2248761 developed by the Company, for the treatment and prophylaxis of human diseases and conditions on a worldwide basis. On October 29, 2009, GSK assigned the License Agreement to its affiliate, ViiV Healthcare Company.
Under the terms of the License Agreement, the Company is eligible to receive up to an aggregate of $433.5 million from ViiV, which included an upfront cash payment of $17.0 million, and up to an aggregate of $416.5 million in development and milestone payments, provided specified preclinical and clinical milestones and specified sales thresholds are achieved. There can be no guarantee that any further preclinical or clinical milestones or sales thresholds will be achieved.
