Pharmacopeia will receive $5 million payment from GlaxoSmithKline in connection with two companies’ product development and commercialization agreement from March 2006. This is the second $5 million payment Pharmacopeia has received.

This payment was triggered by Pharmacopeia’s completion of early discovery activities. Pharmacopeia is eligible to receive a third $5 million payment based on additional early discovery activities. Pharmacopeia is also entitled to milestone payments totaling as much as $83 million per program for any drug development program pursued through the alliance, along with royalties from the sales of any products commercialized by GSK. Pharmacopeia may pursue development of any programs GSK declines to complete.

Hugh Cowley, senior vice president and head of the Center of Excellence for External Drug Discovery (CEEDD) at GSK, said, “The alliance between the CEEDD and Pharmacopeia is off to a tremendous start, and the CEEDD is very pleased with the progress to date on the several programs underway. We expect the alliance to contribute to GSK’s development pipeline in the future, validating the collaboration model we sought to establish under the CEEDD umbrella at GSK.”

“The alliance with GSK has proven to be very valuable to Pharmacopeia,” said Les Browne, Ph.D., president and chief executive officer of Pharmacopeia. “Allying our scientific expertise and platform with the insights we obtain from the CEEDD scientists provides an excellent opportunity to develop novel therapeutics and approaches that we believe may one day address some of the most significant unmet medical needs.”