GSK, NanoBio to develop cold sore treatment

PARSIPPANY, N.J. GlaxoSmithKline and NanoBio Corp. on Wednesday announced an exclusive licensing agreement in the United States and Canada for the over-the-counter use of NB-001, a novel, patented compound representing the next advance in the treatment of cold sores.

Developed by NanoBio, NB-001 provides significant antimicrobial activity against the virus that causes cold sores, herpes labialis.

NanoBio has completed two phase 2 clinical trials of NB-001, demonstrating efficacy and a good safety profile in patients and plans to enter phase 3 testing soon.

"I am pleased to announce this partnership with GSK as it will enable the development and commercialization of NB-001 to its fullest potential," stated James Baker, Jr., NanoBio's CEO and founder. "GSK's demonstrated leadership in developing and marketing consumer healthcare products, including the leading product for the treatment of herpes labialis, makes them the ideal partner for NB-001. On a broader scale, this partnership further validates the promise of our proprietary platform technology, and its potential use in a wide range of dermatological and anti-infective applications."

Cold sores are a prevalent condition affecting approximately 20% of the adult population in the U.S. GSK has established Abreva as the leading cold sore treatment with a greater than 50% share, gaining two share points in the prior 12 months. Abreva is the only OTC medicine approved by the Food and Drug Administration that is proven to shorten cold sore healing time.

Under the terms of the agreement, NanoBio will receive an upfront payment of $14.5 million, and is eligible to receive additional milestone payments of up to $40 million plus single digit royalties on future sales.