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Pin to quick picksGlaxosmithkline Share News (GSK)

Share Price Information for Glaxosmithkline (GSK)

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Share Price: 1,761.00
Bid: 1,757.50
Ask: 1,758.00
Change: 27.50 (1.59%)
Spread: 0.50 (0.028%)
Open: 1,736.00
High: 1,767.00
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Prev. Close: 1,733.50
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U.S. government taps GlaxoSmithKline for new antibiotics

Wed, 22nd May 2013 11:01

LONDON, May 22 (Reuters) - The U.S. government has signed anantibiotics development deal worth up to $200 million withGlaxoSmithKline to tackle the dual threats of drugresistance and bioterrorism.

The collaboration, the first of its kind between Washingtonand a drug company, will allow funding to move around GSK'santibiotics portfolio rather than focusing on a single drugcandidate.

The rise of antibiotic resistance is causing alarm amonggovernments worldwide, leading to warnings from officials suchas England's chief medical officer Sally Davies that the issueis a "ticking time bomb" threatening public health.

Thomas Frieden, director of the U.S. Centers for DiseaseControl and Prevention, recently called for an urgent fight-backagainst "nightmare bacteria".

The collaboration between GSK and the Biomedical AdvancedResearch and Development Authority (BARDA), part of the U.S.Department of Health and Human Services, will study potentialnew drugs to treat conventional pathogens and those that mightbe developed as bioterrorism weapons.

Britain's biggest drugmaker said on Wednesday it wouldreceive $40 million for an initial 18 months and up to a totalof $200 million if the agreement is renewed over five years.

The problem of antibiotic resistance and the rise ofso-called "superbugs" that cannot be treated with traditionalmedicines has been growing for years, but drug companies havebeen reluctant to invest in new medicines because of poorreturns.

Patients tend to take antibiotics for only a short period,prices are traditionally low and any new antibiotics are likelyto be reserved for serious infections - once again minimisingthe sales opportunity.

David Payne, head of GSK's antibacterial discovery unit,said public-private partnerships, like the one with BARDA, werea key part to solving the problem.

GSK is one of relatively few large pharmaceutical companiesstill pursuing research into new antibiotics.

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