Pharmacopeia (Nasdaq: PCOP) has announced that it will receive a milestone payment of $5 million from GlaxoSmithKline (NYSE: GSK), bringing the total received to over $16 million in connection with its ongoing development and commercialization alliance.
The trigger for the additional milestone was Pharmacopeia’s completion of certain early discovery activities under its agreement with Glaxo. This alkso notes that Pharmacopeia is entitled to success-based milestone payments that can total up to $83 million per program for any drug development program pursued through the multi-program alliance. It can also receive up to double-digit royalties on the sales of any products commercialized by Glaxo under the alliance.
Before any pop here, Pharmacopeia had a mere $102 million market cap and had roughly $71.3 million in cash and equivalents on the books, and it also carried $67.3 million in total liabilities.
Jon C. Ogg
March 18, 2008