UPDATE 1-Glaxo licenses Amicus’ Fabry disease drug

* Licenses Amigal for the treatment of Fabry disease

* Glaxo will pay $60 mln in upfront payment and 20 pct stake

LONDON, Oct 29 (BestGrowthStock) – GlaxoSmithKline (GSK.L: ) said it
had licensed Amicus Therapeutics’ (FOLD.O: ) Amigal, which is in
final stage development for the treatment of Fabry disease, in a
further step into medicine for niche medical conditions.

Treatments for Fabry disease, an inherited disorder that
affects about 5,000 to 10,000 people worldwide, are dominated by
U.S group Genzyme (GENZ.O: ), the world’s most successful
developer of rare disease drugs which is being pursued by
Sanofi-Aventis (SASY.PA: ), and British firm Shire (SHP.L: ).

U.S. biotech Amicus will receive an upfront payment of $30
million from Glaxo under the terms of the deal and will be
eligible for further milestone payments of about $170 million,
the companies said in a joint statement.

Amigal, or migalastat hydrochloride, is the group’s lead
product candidate.

Glaxo said it would take a 19.9 percentage stake in Amicus
by buying 6.9 million shares at a price of $4.56 each, resulting
in a total upfront investment of about $60 million.

Shares in GlaxoSmithKline were 0.5 percent lower at 1,226.5
pence by 0944 GMT, slightly underperforming a 0.4 percent weaker
index of UK blue chips (.FTSE: ).

(Reporting by Paul Sandle; Editing by Jon Loades-Carter)

UPDATE 1-Glaxo licenses Amicus’ Fabry disease drug