Synta gets $10 million cancer drug payment

Synta Pharmaceuticals Corp. of Lexington said it received a $10 million payment from GlaxoSmithKline PLC, its partner in developing the cancer drug candidate elesclomol.

Synta said GlaxoSmithKline finished enrolling patients in a late-stage trial of elesclomol earlier this month. The drug is being tested as a treatment for late-stage melanoma, a deadly skin cancer. It is also being tested against prostate cancer.

Elesclomol is designed to fight cancer by triggering programmed cell death. London-based GlaxoSmithKline and Synta agreed to develop the drug together in October 2007. Synta could receive a total of $585 million, plus royalties, if the drug is successfully developed to treat melanoma and other cancers.

Synta shares gave up 2 cents to $7.83 in morning trading as concerns about the depth of the recession put pressure on the markets.

To read Synta's press release, please click here. (AP)