8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) June 18, 2008

GENELABS TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

California	0-19222	94-3010150
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
505 Penobscot Drive, Redwood City, California		94063
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (650) 369-9500

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.02. Termination of a Material Definitive Agreement.

On June 23, 2008, Genelabs Technologies, Inc. (the “Registrant”) announced that Gilead Sciences, Inc. has exercised its right to terminate a research collaboration agreement with the Registrant for nucleoside-based inhibitors for the NS5b hepatitis C virus (HCV) polymerase. Gilead’s notice of termination, dated June 18, 2008, takes effect 90 days from the date of such notice. Upon termination, Gilead will return to the Registrant all rights to the compounds developed in the program.

The Registrant and Gilead signed their license and research collaboration agreement on September 29, 2004. Under the terms of the agreement, Gilead paid the Registrant a nonrefundable $8 million upfront payment and provided $11.2 million in research funding during the first three years of the agreement. In return, the Registrant devoted a specified number of scientists to the program and provided Gilead with exclusive access to certain compounds developed by the Registrant in the program.

In addition, $38 million of milestone payments were to be made on the achievement of pre-determined development goals. No milestone payments have been received by the Registrant during the term of the agreement and no further payments are due pursuant to the termination of the agreement.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

A copy of the press release, dated June 23, 2008, is furnished pursuant to this Item 1.02 as Exhibit 99.01 to this Current Report on Form 8-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

GENELABS TECHNOLOGIES, INC.
By:	/s/ Frederick W. Driscoll
	Name:	Frederick W. Driscoll
	Title:	Chief Financial Officer

Date: June 23, 2008

EXHIBIT INDEX

Exhibit
Number	Description
99.01	Press Release of Genelabs Technologies, Inc., dated June 23, 2008

EX-99.1

Exhibit 99.1

Genelabs Provides Update on Hepatitis C Drug Development With Collaboration Partners

REDWOOD CITY, Calif.—(BUSINESS WIRE)— Genelabs Technologies, Inc. (Nasdaq:GNLB) announced today that based on progress to date, its hepatitis C drug development and commercialization collaboration with Novartis is continuing to the next phase.

In September 2006, Genelabs and Novartis entered into a two-year collaboration to discover and develop certain non-nucleoside inhibitors (NNI) of the NS5b polymerase in HCV. Genelabs was responsible for drug discovery research and Novartis is responsible for development and commercialization. The research phase of the collaboration was completed on June 2, 2008. Genelabs and Novartis will continue to hold joint research committee meetings to monitor the progress of compounds discovered during this phase as they advance.

Genelabs also announced that Gilead has exercised its right to terminate a similar research collaboration agreement for nucleoside-based inhibitors for the NS5b HCV polymerase, and will return to Genelabs all rights to the compounds developed in the program.

“We are very pleased that Novartis is continuing to advance compounds identified in the research phase of our collaboration,” said Ronald C. Griffith, Genelabs’ Chief Scientific Officer. “We look forward to the potential of future milestone achievements with this program. At the same time, we are continuing to independently discover and develop nucleoside-based inhibitors for this important NS5b HCV target and are discussing further collaboration in this area with various third parties.”

About the Novartis HCV Collaboration

Under the terms of the agreement, Genelabs received $19.1 million, including a $12.5 million initial up-front payment over a two-year research period. Additional payments to Genelabs could exceed $175 million if all potential clinical, regulatory and sales milestones are met. Genelabs is also entitled to a royalty on net sales of products arising from the collaboration.

NOTE ON FORWARD LOOKING STATEMENTS AND RISKS:

This press release contains forward-looking statements regarding the continued development of compounds identified in the course of Genelabs’ collaboration with Novartis, and Genelabs’ ongoing discovery and development efforts relative to HCV inhibitors. These forward-looking statements are based on Genelabs’ current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from the statements made, including, without limitation, uncertainties and risks associated with the discovery and preclinical development of therapeutic compounds and the continued commitment of Genelabs’ current and prospective collaborative partners. Please see the information appearing in the company’s filings with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, under the captions “Risk Factors,” “Business Risks” and “Forward-Looking Statements” for more discussion regarding these uncertainties and risks and other risks that may cause actual results to differ from those included in the forward-looking statements. Genelabs does not undertake any obligation to update these forward-looking statements or risks to reflect events or circumstances after the date of this release.

Contacts
Genelabs Technologies, Inc.
Frederick Driscoll, 650-562-1477
Chief Financial Officer

Source: Genelabs Technologies, Inc.