Wragge & Co LLP's cross-firm life sciences practice has advised biotechnology company Chroma Therapeutics Limited on two simultaneous transactions completed in one day.

In the first deal, Chroma has collaborated with healthcare company GlaxoSmithKline to research and develop novel targeted therapies for the treatment of inflammatory disorders such as rheumatoid arthritis. Under the terms of the collaboration, Chroma will receive a significant up-front payment, plus a potential $1 billion in total milestone and option payments.

In addition, GSK has invested in a £15 million Series D financing round. Existing venture capital backers Abingworth Management Limited, Essex Woodlands Health Ventures, Gilde Healthcare Partners, Nomura Phase4 Ventures and The Wellcome Trust also committed funding. Chroma will use the funds to further its clinical development candidates for the treatment of cancer.

Private equity partner Ian Piggin and associate Emmanuelle Strauven advised on the £15 million Series D funding with assistance from corporate partner Kevin Jones and solicitor Francesca Brookes. Life sciences partner Patrick Duxbury and associate Yvonne Madawela advised on the collaboration agreement. The team worked alongside chief executive officer Ian Nicholson, chief financial officer Richard Bungay and Liz Roper, senior business development manager at Chroma.

Ian Piggin said: "This challenging deal involved parties based in multiple jurisdictions and complex negotiations. It required legal advisers with the ability to co-ordinate simultaneous transactions in a tight timeframe. Despite a difficult investment climate, the company believes these agreements will play a vital role in bringing new and innovative treatments to the healthcare market."

Ian Nicholson, CEO of Chroma, commented: "The team at Wragge & Co has invested substantial time in building their knowledge of Chroma over the last five years, which enabled them to work seamlessly to deliver two linked agreements rapidly to completion."

Oxford-based Chroma Therapeutics is a drug discovery and development company focused on oncology and inflammatory disorders. It is backed by a number of leading specialist investors. Wragge & Co has a longstanding relationship with the client.

The firm's sector-focused life sciences practice delivers a unique mix of IP, corporate, antitrust, regulatory and dispute resolution advice to many of the sector's key players. It acts for a broad range of clients, from start-up to multinational, on a growing number of high-profile M&A transactions, cross-border collaborations and patent litigation cases. Clients include AstraZeneca, Genentech, the Medical Research Council, Prosidion, Unilever, MedImmune and 3i.

Notable deals in the last 12 months include advising Eisai Europe Limited on a cross-border €95 million licence and co-promotion agreement with Bial-Portela & CA, S.A and advising Astex Therapeutics Limited on a landmark $500 million drug discovery alliance with Janssen Pharmaceutica N.V. The team also advised US client Inverness Medical Innovations, Inc. on its takeover of UK-based BBI Holdings PLC for a total consideration of up to £83 million.

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This press release may contain information of general interest about current legal issues, but does not give legal advice.