GlaxoSmithKline makes antibiotics deal with Mpex

Under the deal, Glaxo will pay San Diego-based Mpex $8.5 million upfront as well as $6.5 million in equity financing. Mpex can develop up to seven different treatments, with milestones of $200 million to $250 million per candidate.

Mpex will advance the candidates through mid-stage development, at which point Glaxo will have the opportunity to license the candidate.

Mpex is developing compounds known as efflux pump inhibitors, that can be combined with marketed or experimental antibiotics, to thwart a part of bacteria cells that have been shown to be a key source of drug resistance.

Mpex's work focuses on pathogens that are gram-negative, as opposed to targeting gram-positive bacteria that other companes are working on.

Glaxo said that it could bring some of its antibiotics under development to Mpex as part of the collaboration.

In afternoon trading, Glaxo shares rose 79 cents to $42.83.