Spring/Summer 2011

GlaxoSmithKlines Centre of Excellence for External Drug Discovery (the ceedd) builds and personally manages unique risk/reward-sharing drug discovery alliances with world-class biotech companies to help bring transformative science from target to clinical proof of concept.

The ceedd: Pioneers in the Quest for New Medicines

GSK realized it might not have the monopoly on wisdom when it came to developing new medicines. In order to access the best in the world innovation GSK established a small semi-autonomous scientific investment team of about 25 people in 2005 - the Centre of Excellence for External Drug Discovery, the ceedd. The ceedd was the first team in GSK R&D to be truly externally focused with no internal programs to manage, working across all therapy areas and tasked to form multi-program, risk/reward-sharing alliances. The ceedd is a pioneer in GSKs quest to find new medicines. The team goes to great lengths to actively seek out and collaborate with world-class biotechnology companies.

The ceedd team collaborates with its alliance companies to discover innovative scientific platforms and compounds and nurture them to their full potential to provide the world with differentiated medicines that will deliver significant benefits to patients. In the process, it protects its alliance companies independence and creativity and always looks to find joint solutions to enable medicine progression where the end result is life changing for the patient.

Recent Key Milestones ceedd key contacts

Mission: Bringing More Medicines of Value to More Patients

January 12, 2011 GlaxoSmithKline and ChemoCentryx announce initiation of Phase III study of GSK'786, formerly Traficet-EN(TM), for the treatment of Crohn's disease January 10, 2011 OncoMed Pharmaceuticals Initiates Phase 1 Clinical Trial of Anti-Cancer Stem Cell Therapeutic OMP-59R October 22, 2010 Prosensa Receives 7.5M Milestone Payment as Part of Its Program with GlaxoSmithKline in Duchenne Muscular Dystrophy October 18, 2010 Max Planck Institute of Biochemistry and GlaxoSmithKline enter a research collaboration to develop novel type II diabetes treatments

A Differentiated Approach

Semi-autonomous team, allowing the ceedd team to respond expeditiously Two geographic centers in the U.S. and U.K. to facilitate faster decisions and deal making across multiple therapy areas

Small team of 20 with experience across multiple scientific & business disciplines

Open to forming alliances at any point in the development path from target to proof of concept Offers access to the full strength of GSK resources

Works

Open for Innovation

6

years experience in external drug discovery ongoing collaborations

8 3

assets at clinical proof of concept successfully transitioned into GSK for further development

We are looking to create alliances with innovative biotechnology companies that have a validated platform that potentially could be applied across multiple therapeutic areas. The ceedd stands out because we can form these alliances at any point in the development path and our approach focuses squarely on sharing the risks and rewards of drug discovery within each alliance.

Jason Gardner, Ph.D.

Head of ceedd

Declan Jones, Ph.D.

Head of European ceedd

- Declan Jones, Ph.D.,

Head of European ceedd

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Courting the Front Runners

The ceedd is open to alliances starting at any point in the development path from target to clinical proof of concept (PoC). It specifically targets biotechs companies whose platforms and science offers broad applications.

Alliance

Formed

Focus of the Deal

To discover, develop and market novel medicines targeting four chemokine and chemoattractant receptors for the treatment of a variety of inflammatory disorders. Earlier this year, GSK exercised the option to progress development of ChemoCentryxs Traficet-EN, a specific CCR9 antagonist for the treatment of inflammatory bowel diseases, including Crohns disease. Most recently, the company identified a novel small molecule ChemR23 antagonist for the treatment of inflammatory diseases. This compound, CCX832, represents the fourth and final drug candidate under this alliance. Under the scope of the collaboration, there are two additional programs currently in clinical trials a Phase 2 trial of CCX354 in patients with rheumatoid arthritis and a Phase 1 trial of CCX168, a small molecule designed to treat autoimmune diseases. Harnessing the power of chromatin biology using its novel and proprietary drug targeting approach to create a new generation of cancer and inflammation treatments. Under the scope of this collaboration, Chroma will undertake four discovery and development programs to identify small molecule therapeutics, including its macrophage-targeted HDAC inhibitor program for inflammatory disorders such as rheumatoid arthritis. Leveraging deuterium-based chemistry to create and develop highly differentiated new medicines. The alliance encompasses three of Concerts research and development programs, including CTP-158, a protease inhibitor for the treatment of HIV. Concert recently launched a Phase 1b clinical trial of CTP-158. Exceptional, results-oriented experts in kinase biology. The Max Planck Institute (MPI) of Biochemistry in Martinsried and the ceedd signed a research collaboration agreement on the development of novel medicines for the treatment of type II diabetes. Targeting the pathways critical to cancer stem cells. The ceedds alliance with OncoMed has established a diverse pipeline of monocolonal antibodies to target multiple pathways important to the activity of cancer stem cells. Innovative RNA-based therapeutics for the treatment of Duchenne Muscular Dystrophy (DMD). The scope of the ceedds newest alliance includes four RNA-based product candidates to treat specific, but different, subpopulations of DMD patients. An open label Phase 1/2 study is underway for Prosensa's second clinical candidate for treatment of DMD, PRO044. Most recently, the company initiated development of two additional programs under the ceedd alliance - a validation of both Prosensa's platform and its relationship with the ceedd. Provides optimized chemistry from identification through to clinical proof of concept in a wide range of therapeutic indications. The alliance has clinical assets in development and more candidates are expected soon. Focused on the discovery, development and commercialization of small molecule medicines for respiratory diseases.

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Contact CEE67885@gsk.com

U.K. ceedd Gunnels Wood Road Stevenage Hertfordshire SG1 2NY (UK)

U.S. ceedd 2301 Renaissance Boulevard P.O. Box 61540 King of Prussia, PA 19406-2772 (USA)

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