Gilead and Galapagos Enter Into $5.1 Billion, 10-Year Global R&D Collaboration to Advance Differentiated Pipeline Assets

July 15, 2019/BioValleyBIOON/--Gilead Sciences and Galapagos recently announced that they have signed a 10-year global R&D collaboration. Through this partnership, Gilead will gain access to an innovative portfolio of compounds, including those currently undergoingClinical Trialsix molecules, more than 20 preclinical projects, and a validated drug discovery platform.

Under the terms of the agreement, Galapagos will receive a $3.95 billion upfront payment and an $1.1 billion equity investment from Gilead Sciences. Galapagos will utilize these funds to expand and accelerate its research and development programs. Gilead Sciences will obtain exclusive licenses and options to develop and commercialize all current and future programs in all countries outside Europe. Furthermore, Gilead Sciences and Galapagos have agreed to amend certain terms of the agreement regarding the JAK inhibitor filgotinib, which is currently being developed for the treatment ofRheumatoid ArthritisAlong with other inflammatory diseases, this revision will provide Galapagos with broader commercialization opportunities in Europe.

This collaboration will strengthen scientific cooperation between the two companies. Gilead will have access to Galapagos’ established research infrastructure, including more than 500 scientists, as well as Galapagos’ unique platform that leverages disease-relevant human primary cell assays to discover and validate new drug targets. Following the closing of the transaction, Gilead will also nominate two individuals to join the Board of Directors of Galapagos.

As part of the collaboration, Gilead acquired rights to GLPG1690, a Phase III clinical-stage therapy for the treatment of idiopathic pulmonary fibrosis. Gilead also secured an option for GLPG1972, currently in Phase IIb clinical development for the treatment of osteoarthritis. Both GLPG1690 and GLPG1972 are first-in-class compounds that provide Gilead with significant mid-to-late-stage pipeline opportunities. Additionally, Gilead will obtain options for all current and future clinical programs of Galapagos outside of Europe.

Daniel O’Day, Chairman and Chief Executive Officer of Gilead Sciences, stated, “We are pleased to reach this unique agreement, which will generate 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. Gilead will also gain exclusive access to all current and future compounds in Galapagos’ rich pipeline, while Galapagos will be able to expand its research activities and build commercial infrastructure. This collaboration reflects Gilead’s commitment to growing our innovation network through diverse and creative partnerships.” (Bioon.com)

Original Source:Gilead and Galapagos Enter Into Transformative Research and Development Collaboration