GSK, SIRNA COLLABORATING ON NEW THERAPEUTICS

UK-based GlaxoSmithKline (GSK) and California's Sirna Therapeutics will forming a strategic alliance focused on the discovery, development and commercialisation of novel RNA interference (RNAi)-based therapeutics for respiratory diseases, the companies have reported.

Sirna will receive an initial payment of $12 million, made up in cash and purchase of Sirna common stock, at $ 8.36 per share. Under the agreement, Sirna may also receive milestone payments in excess of $700 million for collaboration and clinical development events, as well as royalties on worldwide sales of products produced by the alliance. Sirna will also be eligible to receive contract manufacturing revenues.