BIOTECH company Oxford BioTherapeutics has signed a deal with UK pharmaceutical giant GlaxoSmithKline which could be worth up to £244m.

The company rose from the ashes of Oxford University spin-out Oxford Glycosciences, which disappeared after being taken over by Celltech.

The collaboration with GSK aims to discover, develop and commercialise new antibody treatments for cancer. OBT, of Milton Park, near Abingdon, will receive an undisclosed upfront payment and will be eligible for up to £244m if milestones are achieved.

OBT’s antibody discovery platform builds on its protein database, including 5,000 cancer membrane proteins from blood and cancer tissue. Chief executive Christian Rohlff said the alliance validated the company’s cancer target discovery, as well as financing the development of human therapeutic antibodies which could help in the fight against cancer.

* Gene therapy company Oxford Biomedica says two new commercial deals it agreed with French drugmaker Sanofi-Aventis last month have improved its financial position "significantly", and that it now has enough cash to support operations into 2012.