Gilead invests $5.1 billion into Galapagos NV
pharmafile | July 15, 2019 | News story | Sales and Marketing |Â Â Galapagos, Gilead, biotech, collaboration, deal, drug discovery, pharmaÂ
Gilead has entered into a 10 year partnership with Belgo-Dutch biotech Galapagos NV.
The collaboration will see Gilead invest $5.1 billion in Galapagos. The deal will give Gilead access to Galapagos’ portfolio which includes six molecules in clinical trials, 20 preclinical programmes and a proven drug discovery platform.
Gilead will pay Galapagos $3.95 billion upfront and a further $1.1 billion equity investment which Galapagos will use to expand and accelerate its research and development programmes.
The Foster City-based firm will pay Galapagos €140.59 per new share as it increases its stake in Galapagos from 12.3% to 22%. The price paid is almost 10% higher than the Galapagos’ share price on closing on Friday.
Under the terms of the deal, Gilead will be given an exclusive product license and option rights to develop and commercialise all current and future programmes in all countries outside of Europe.
Gilead will also gain the rights to Galapagos’ Phase 3 candidate GLPG1690, a potential drug for the treatment of idiopathic pulmonary fibrosis and the firm’s Phase 2b candidate GLPG1972 for osteoarthritis.
Gilead CEO Daniel O’Day commented: “We chose to partner with Galapagos because of its pioneering target and drug discovery platform, proven scientific capabilities and outstanding team.
“Gilead also gains exclusive access to all current and future compounds in Galapagos’ rich pipeline while Galapagos is able to expand its research activities and build commercial infrastructure. The collaboration reflects Gilead’s intent to grow our innovation network through diverse and creative partnerships.”
Galapagos CEO Onno van de Stolpe, commented: “What a fantastic moment in our 20th anniversary year to sign this landmark deal with our great partner Gilead. 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.”
Louis Goss
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