GlaxoSmithKline purchases minority stake in Autifony Therapeutics

GlaxoSmithKline is to purchase a minority stake in Autifony Therapeutics, a new UK-based spin-out company.

The company's Glaxo Group Limited division will be making an investment of 1.25 million pounds to receive a 25.4 percent equity stake in the biotechnology start-up company.

Under the terms of the agreement, Autifony will issue 850,000 A ordinary shares to GlaxoSmithKline in exchange for several pre-candidate voltage-gated ion channel modulator compounds, which are intended for use as hearing loss treatments.

A further allocation of shares will be provided in recognition of development work performed on Autifony's behalf, with an additional stake to be issued based on the achievement of a pre-determined milestone.

Autifony Therapeutics has been created alongside investors Imperial Innovations and SV Life Sciences via a funding round of up to 10 million pounds.

Earlier this month, GlaxoSmithKline and partner Impax Pharmaceuticals reported positive new trial data from a study of IPX066, a developmental treatment for Parkinson's disease.