By Tess Stynes
AbbVie Inc. (ABBV) entered into an alliance with Belgium-based
Galapagos NV (GLPG.BT) to develop oral therapies that address the
main mutations in cystic fibrosis patients, a deal potentially
valued at $405 million.
AbbVie, which was spun off from Abbott Laboratories (ABT)
earlier this year, will pay $45 million upfront for rights related
to the alliance. Galapagos will be eligible for as much as $360
million in milestone payments.
The goal of the collaboration is to identify compounds that
correct defects in expression of and/or increase the activity of
the main mutations in the cystic fibrosis transmembrane regulator
protein. The companies are aiming to initiate Phase I studies at
the end of next year. Once a drug receives approval, AbbVie would
be responsible for commercial activities, while Galapagos would
retain exclusive rights in China and South Korea and co-promotion
rights in Belgium, the Netherlands and Luxembourg.
Galapagos initiated its research in cystic fibrosis in 2005 as
part of a collaboration with the Cystic Fibrosis Foundation.
Galapagos decided in 2010 to pursue cystic fibrosis as the first
orphan disease targeted by the company, and has developed therapies
to restore the function of a certain defective protein found in the
disease.
AbbVie shares closed Monday at $47.10 and were inactive
premarket.
Write to Tess Stynes at tess.stynes@wsj.com
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