Astex forms new drug alliance

Astex Therapeutics has linked up with the biotech research and development arm of a Belgian pharmaceutical organisation.

The firm will work alongside Janssen Pharmaceutica NV in a new drug discovery alliance.

Astex will grant a worldwide licence to the company – which markets prescription medications for the treatment of schizophrenia and bipolar mania – to develop and commercialise compounds arising from its FGHR programme.

The Cambridge firm will receive cash, equity payments and research funding totalling $37 million (£19 million) in a deal that could see additional payments of more than $500 million.

Harren Jhoti, chief executive of Astex, said, "This is another landmark agreement for Astex, and we are delighted to be working with one of the global leaders in oncology drug development on this discovery alliance."

The company claims to be a pioneer in fragment-based drug discovery and uses its propriety drug discovery platform Pyramid to identify and characterise novel small drugs.