Global drug maker GlaxoSmithKline (GSK), headquartered in London, says it will take an 18 percent equity stake in Convergence Pharmaceuticals Ltd., a new biotech company developing analgesic compounds, often used in over-the-counter pain relievers.
Convergence Pharmaceuticals was officially launched on 4 October. The company has raised $35.4 million in Series A (early-stage) financing from a group of U.S. and European life science investors. Under the terms of the agreement, Convergence Pharmaceuticals has acquired two clinical stage assets from GSK together with rights to certain other earlier stage compounds and contributions in kind.
In return, Convergence Pharmaceuticals has issued shares to GSK valued at $4.7 million. GSK has also taken up an observer role on the board of Convergence Pharmaceuticals.
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