GSK and Galapagos Enter into Drug Discovery and Development Alliance

Date Posted: Wednesday, June 07, 2006

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GlaxoSmithKline and Galapagos NV have announced the creation of a worldwide, multi-year, multi-programme drug discovery and development alliance in the field of osteoarthritis. 

GSK, through its recently established Center of Excellence for External Drug Discovery (CEEDD), and Galapagos will collaborate to deliver disease modifying drugs with clinical Proof of Concept to GSK’s global research and development organisation. 

This alliance builds upon Galapagos’ internal target and drug discovery programmes in osteoarthritis. 
The aim of this turn-key agreement is for Galapagos to expand its portfolio of novel validated targets in the field of osteoarthritis, to conduct compound screening, identify tractable hits, pursue a number of hit-to-lead programmes, and develop the resulting leads into candidate selection compounds through to a Proof of Concept in clinical research Phase IIA. 

GSK will have exclusive options to further develop and commercialise these compounds on a worldwide basis. 

Galapagos will have the right to further develop and commercialise compounds for which GSK does not exercise its option. 

Galapagos will contract a substantial part of the activities to its service division, BioFocus.  
The focus of the alliance’s efforts will be on delivering disease-modifying drugs with clinical Proof of Concept for osteoarthritis to GSK’s global research and development organisation. 

The overall strategy will be to identify genes that stimulate anabolic repair processes (chondrogenesis) and inhibit catabolic (breakdown) activity in affected joints. 
Under the terms of the agreement, Galapagos will receive an upfront technology access fee of €4 million from GSK.

Upon completion of all agreed alliance programme criteria, Galapagos stands to receive up to €65 million in success-based milestones for drug development programme. 

In addition, Galapagos will receive up to double-digit royalties on commercial sales of alliance products. 

Further to the agreement, on the realisation of a defined future milestone, GSK will make an equity investment of up to €3 million in Galapagos.
Maxine Gowen, Ph.D., Senior Vice President and head of GSK’s CEEDD stated, "We are very pleased to be able to announce the alliance with Galapagos."

"As there are no therapies available that prevent or block the progression of osteoarthritis, the potential unmet need is substantial."

"Through this combination of GSK’s understanding of medical needs and Galapagos’ innovation in drug discovery, we aim to bring new medicines to patients."
"The alliance announced today fits very well into our strategy to provide turn-key drug discovery services to the biopharmaceutical industry," said Onno van de Stolpe, Chief Executive Officer of Galapagos. 

"With this first broad alliance, we have started to realise the strategic synergies of combining BioFocus’ drug discovery capabilities with Galapagos’s target discovery engine."

"The alliance with GSK in osteoarthritis also serves as a strong validation of Galapagos’s internal drug discovery programmes in bone and joint diseases."

Further Information: http://www.glpg.com