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Ranbaxy initiates Phase I on respiratory inflammation compound

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Executive Summary

Ranbaxy Laboratorieshas initiated Phase I clinical studies in India and Europe on a lead compound for respiratory inflammation under its collaborative research programme withGlaxoSmithKline. Ranbaxy, now a subsidiary of Daiichi Sankyo, is expected to receive a milestone payment for beginning Phase I studies. Ranbaxy is also responsible for conducting Phase II clinical studies through to proof-of-concept (Phase IIa), after which GSK will have the option to conduct further development through to final commercialisation. The Ranbaxy/GSK collaboration began in 2003 and was expanded in February 2007. The expanded agreement gave Ranbaxy additional drug development responsibilities and further financial opportunities. Ranbaxy could receive more than $100 million in potential milestone payments for a product developed by it and subsequently launched by GSK in multiple indications and up to double-digit royalties on worldwide net sales. The alliance is working on programmes in the areas of anti-infectives, respiratory and oncology indications.

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