GlaxoSmithKline entered into its second drug discovery alliance with South San Francisco-based biotech FivePrime Therapeutics and sold several OTC brands to the South African pharmaceutical Aspen Pharmacare. In the deal with FivePrime, GSK will gain exclusive access to FivePrime’s technology in up to six programs to identify and validate potential drug targets and candidates relevant to refractory asthma and chronic obstructive pulmonary disease.

GSK will have an option to exclusively license selected targets discovered by FivePrime in the collaboration and take on sole responsibility for further development of most of the targets it licenses. FivePrime will have the opportunity to advance biologic products through human proof-of-mechanism clinical studies for a limited number of licensed targets, after which GSK will have an exclusive option to exclusively license global rights for such products in exchange for more payments to FivePrime.

As part of the deal, FivePrime will get up to $30 million over four years from an upfront fee, an equity investment in the company by GSK, research funding, and option payments related to the research program. If GSK licenses a candidate after FivePrime has developed it through the proof-of-mechanism stage, the biotech will be eligible for up to $193.5 million in potential option exercise fees and milestone payments, plus royalties on sales of any approved products.

“We are delighted to form this second strategic alliance with GSK to find first-in-class drugs and drug targets for treatment-refractory respiratory diseases, which is a core area for FivePrime. GSK is a leader in the research and development of respiratory products and brings tremendous expertise to the collaboration,” says Lewis Williams, founder, president and CEO of FivePrime. The biotech’s existing GSK alliance is focused on skeletal muscle disorders and was expanded in 2011.

FivePrime partnered with Human Genome Sciences, which GSK has sought to buy, in 2011 to develop and commercialize its lead cancer candidate, FP-1039. It also has partnering agreements with Pfizer and Johnson & Johnson.

At the same time as it has been bolstering its innovation pipeline, GSK has been divesting non-essential over-the-counter brands in international markets, wrapping up with a final sale of 19 brands for $263 million to Aspen Pharmacare, South Africa’s biggest pharmaceutical, which is also partially owned by GSK. The brands, which include Zantac, generated almost $96 million in sales in 2011. GSK expects to realize about $218 million from the sale, which will be returned to shareholders before the end of 2012.

In February 2011, GSK announced its intention to divest its non-core consumer healthcare over-the-counter products to focus on priority brands and markets. In December it sold its U.S. and Canada brands to Prestige Brands for $660 million and in March it sold its European brands to Omega Pharma for approximately $470 million.