Japan’s Shionogi & Co to take 10% in GSK-Pfizer HIV joint venture Viiv Healthcare

29 Oct 2012

Japanese pharmaceutical firm Shionogi & Co today said that it will take a 10-per cent stake in Viiv Healthcare, a HIV drug joint venture between GlaxoSmithKline (GSK) and Pfizer, in exchange for its rights to the drug Dolutegravir.

Osaka-based Shionogi said that it has extended its integrase inhibitor deal with Viiv Healthcare by giving the exclusive global rights to its investigational medicine dolutegravir and other early stage integrase inhibitor compounds to the Shionogi-ViiV Healthcare joint venture.

In return, Shionogi will receive a 10-per cent stake and a board seat in ViiV Healthcare.

Under the new deal that replaces the existing joint venture agreement between Shionogi and ViiV Healthcare, Shionogi will receive a royalty on net sales of the integrase inhibitor portfolio averaging in the high teens.  For a defined period post-launch, the royalty is for sales above certain minimum thresholds, and later to all sales.

ViiV Healthcare was established in 2009 as a speciality HIV company between London-based GSK and New York-based Pfizer, holding 85-per cent and 15 per cent stakes respectively.

Post transaction, GSK will hold 76.5 per cent, Pfizer 13.5 per cent and Shionogi 10 per cent.