UPDATE 1-Glaxo, Vernalis sign up to $200 mln cancer deal
* Vernalis gets $6 mln upfront, up to $200 mln in milestones
* Deal covers early research vs undisclosed oncology target
(Adds details, background)
LONDON, Aug 6 (Reuters) - GlaxoSmithKline Plc (GSK.L), the world's second-largest drugmaker, has signed a deal potentially worth $200 million with British biotech company Vernalis Plc (VER.L) to boost its early-stage research in cancer.
Vernalis will get $6 million upfront, including a $3 million equity subscription by Glaxo for a 3.4 percent stake, and is eligible for much larger payments plus up to double-digit royalties on any sales if the research is successful.
The deal represents a significant funding boost for Vernalis.
The loss-making company said it had ended the first half of 2009 with 27.8 million pounds ($47.2 million) in cash, adding it had secured a further $7.5 million since the end of the period from deals with Glaxo and Novartis AG (NOVN.VX).
It made an operating loss for the six months to June 30 of 5.3 million pounds, down from 9.6 million a year. (Reporting by Ben Hirschler; Editing by David Holmes)
