Plexxikon teams up with Roche, eyes $335M to fight kidney disease
Pharmaceutical company Plexxikon has joined forces with health care giant Roche for at least $60 million to develop a treatment for polycystic kidney disease, commonly called PKD. Under the terms of the deal, Roche will have full global rights to commercialize and market the compound, and several other related drug candidates. In exchange (on top of the $60 million upfront), Plexxikon will be able to earn up to $275 million as it achieves various milestones. It is also entitled to royalties from drug sales, and will be able to co-promote any resulting products.
Headquartered in Berkeley, Plexxikon says the deal will cover operations through 2012. It will use the money to support early-stage development work and mid-stage clinical trials slated to begin later this year. The sum seems like a lot but is dwarfed by the first deal of this kind between Plexxikon and Roche, worth more than $700 million, in October 2006. Some of the milestones outlined in this agreement have already been cleared, the company says.
Plexxikon has also raised $67 million from Alta Partners and Advanced Technology Ventures, among others.
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