We selectively seek strategic alliances that enable us to maintain financial and operational flexibility while retaining significant clinical development, and operational involvement and the commercial rights to our drug candidates. We very much believe in the value of such partnerships, but importantly, with the right deal architecture that preserves for Cytokinetics key rights and participation. We are currently engaged in two major partnerships, one with Amgen in the area of cardiac contractility for the potential treatment of heart failure and the other with GlaxoSmithKline in the area of cancer. In addition, we actively seek strategic alliances for our programs in pre-clinical development as well as academic collaborations with leading investigators in related fields.
In December 2006, we entered into a strategic alliance with Amgen to discover, develop and commercialize novel small-molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure. In addition, Amgen obtained an option to participate in future development and commercialization of Cytokinetics' lead drug candidate arising from this program, CK-1827452, which had then recently completed two Phase I clinical trials. To exercise its option, Amgen would be required to pay a non-refundable exercise fee and thereafter would be responsible for development and commercialization of CK-1827452 and related compounds, at its expense, subject to Cytokinetics’ development and commercial participation rights. The collaboration is worldwide, excluding Japan.
In addition, Cytokinetics may be eligible to receive pre-commercialization and commercialization milestone payments on CK-1827452 and other products arising from the research as well as escalating royalties. Cytokinetics also has the opportunity to earn increased royalties by participating in Phase III development costs. In that case, Cytokinetics could co-promote resulting products in North America and would be expected to play a significant role in the agreed commercial activities in institutional care settings.
For more information about this alliance, please read the January, 2007 Press Release.
In June 2001, we entered into a strategic alliance with GSK to discover, develop and commercialize novel small-molecule therapeutics targeting mitotic kinesins for applications in the treatment of cancer and other diseases. This alliance combines Cytokinetics' expertise in the biology and pharmacology regarding mitotic kinesins, including kinesin spindle protein (KSP) and centromere-associated protein E (CENP-E), with GSK’s pharmaceutical research, development and commercialization capabilities.
Under the original terms of the collaboration agreement, GSK was responsible for worldwide development and commercialization of products arising from the collaboration with Cytokinetics receiving royalties from the sale of any resulting products. In addition, Cytokinetics retained a product-by-product option to co-fund certain later-stage development activities, thereby increasing our royalty and affording co-promotion rights in North America. For more information about the original GlaxoSmithKline partnership agreement, please read the June, 2001 Press Release.
In September 2005, Cytokinetics amended this alliance with GSK regarding the development of SB-743921, the second KSP inhibitor being developed under collaboration. Under this amendment, Cytokinetics expanded its role in clinical research and development and funding of SB-743921 for the indications of non-Hodgkin lymphoma, Hodgkin lymphoma and multiple myeloma. This amendment provided Cytokinetics the opportunity to explore these additional therapeutic indications for SB-743921 under an expanded development program. Exemplifying the maturation of our clinical and non-clinical developmental abilities, GSK retained certain rights to develop and commercialize SB-743921 in the additional indications being pursued by Cytokinetics. For more information about this amendment to our collaboration, read the September, 2005 Press Release.
In June 2006, we announced the extension of the research term under our strategic alliance with GSK for an additional year to continue research activities focused towards CENP-E. This research term extension will positively contributed to the further translational research activities underlying the development activities of GSK-923295, a drug candidate that targets CENP-E. For more information about the research term extension, read the June, 2006 Press Release.
In November 2006, we announced another amendment of our collaboration and license agreement with GSK. Under this amendment, Cytokinetics assumed responsibility for the costs and activities of continued development of the KSP inhibitors ispinesib and SB-743921, subject to GSK's option to resume responsibility for some or all development and commercialization activities associated with each of these novel drug candidates. The November 2006 amendment superseded the previous amendment to the collaboration and license agreement dated September 2005, which specifically related to SB-743921. For more information about this amendment to our collaboration, read the November, 2006 Press Release.
