Gilead and Galapagos Announce Global R & D Collaboration

GileadSciences, Inc. and Galapagos NV announced that they have entered into a 10-year global research and development collaboration, giving Gilead access to six molecules in clinical trials, more than 20 preclinical programs, a Galapagos’ drug discovery platform, and an exclusive product license and option rights to develop and commercialize current and future programs in countries outside Europe.

Galapagos will receive a $3.95 billion upfront payment and a $1.1 billion equity investment from Gilead, according to a July 14, 2019 press statement. Additionally, the companies have agreed to amend certain terms in the agreement governing filgotinib, the candidate being advanced for rheumatoid arthritis and other inflammatory diseases to provide a broader commercialization role for Galapagos in Europe.

Gilead also will gain rights to GLPG1690, Galapagos' Phase 3 candidate for idiopathic pulmonary fibrosis and receives option rights for GLPG1972, a Phase 2b candidate for osteoarthritis, in the United States.

"We are excited to enter into this unique agreement, which will generate both long-term strategic value and mutual, immediate benefits. We chose to partner with Galapagos because of its pioneering target and drug discovery platform, proven scientific capabilities and outstanding team," said Daniel O'Day, chairman and chief executive officer of Gilead in the press statement.

"What a fantastic moment in our 20th anniversary year to sign this landmark deal with our great partner Gilead," said Onno van de Stolpe, chief executive officer of Galapagos."Galapagos has been highly effective at target identification and drug discovery, progressing novel molecules from research into the clinic. We will benefit greatly from Gilead's expertise and infrastructure and believe this collaboration will provide an accelerated path to advance our pipeline. This agreement is about maximizing innovation based on developing new mode of action medicines. With the capital provided by Gilead, we aim to progress innovation to patients."

Source: Galapagos