From the headlines touting GlaxoSmithKline's
Glaxo is only giving the private drug developer about $25 million up front -- some of which will be in the form of equity. Cellzome will use its kinase inhibitor technology to develop drugs against seven different kinase targets.
Kinases are proteins involved in a range of cellular processes. By finding appropriate targets to inhibit, drug companies can design drugs to treat a wide array of diseases, from cancer to rheumatoid arthritis to multiple sclerosis. It seems that almost every company, including Pfizer
Like its deal with Exelixis
It seems like we're seeing large pharmaceutical companies hand out more of these pay-as-you-go deals, rather than paying a large amount for compounds farther along in the clinic. Locking up drugs early in development certainly benefits these companies, although grabbing them before they even get into the clinic, like Glaxo just did, seems almost too premature.
At least this deal should help Glaxo get ahead of its peers in the R&D spending contest.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Pfizer is an Inside Value selection. Exelixis is a Rule Breakers pick, and The Fool owns shares of it. The Fool has a disclosure policy.