Shionogi joins GSK, Pfizer HIV drug venture

Hannah Blake

pharmaphorum

Japanese pharmaceutical group, Shionogi &amp, Co is entering into an agreement with ViiV Healthcare, substantially revising their integrase inhibitor relationship.

ViiV Healthcare was established in 2009 as a speciality HIV company between GlaxoSmithKline and Pfizer, with an 85%, 15% equity split respectively. In exchange for the exclusive global rights to Shionogi’s dolutegravir, post transaction equity positions in ViiV Healthcare are now: GSK, 76.5%, Pfizer 13.5% and Shionogi, 10%. This agreement will replace the former agreement between Shionogi and ViiV Healthcare.

Dolutegravir is a once-daily drug that belongs to a novel class known as integrase inhibitors that block the virus causing AIDS from entering cells. It has performed strongly in clinical trials and is seen by analysts as a potential multi-billion-dollar-a-year seller.

“The Shionogi-ViiV Healthcare joint venture has been extremely productive, with the first integrase inhibitor, dolutegravir, scheduled to commence filings before the end of the year. Both ViiV Healthcare and Shionogi believe that now is the right time to simplify and evolve their existing arrangement. In doing so, we will deepen the relationship as shareholders and at Board level. We will also unlock synergies through simplifying processes and avoiding duplication. We believe this new agreement will create long-term value for ViiV Healthcare and its shareholders.”

David Redfern, Chairman of the Board, ViiV Healthcare.

Dolutegravir is scheduled to be submitted for regulatory approval in the United States and Europe by the end of this year. Should dolutegravir be approved in the US and EU, GSK would be entitled to 1.8% additional equity, but Shionogi’s equity percentage would not be diluted. Industry analysts expect a launch by late 2013.