Galapagos, Gilead Partner to Develop Filgotinib

   By Anne Steele

Galapagos NV (GLPG) and Gilead Sciences Inc. (GILD) on Thursday said they will develop and commercialize a treatment for rheumatoid arthritis and other inflammatory diseases.

As part of the deal, Galapagos will receive $725 million up front, including a $300 million license fee and a $425 million equity investment from Gilead, which will then have a roughly 15% stake in Galapagos. Gilead will pay EUR58 a share, a 20% premium over the average Galapagos share price over the last 30 days.

Galapagos also will receive payments of up to $1.35 billion in milestones, with tiered royalties and a profit split in co-promotion territories.

The companies said phase 2 trial data show potential for filgotinib as an "effective and well-tolerated" oral therapy for patients with rheumatoid arthritis and Crohn's disease. Phase 3 trials for both conditions will start in 2016, pending regulatory approval.

Galapagos will fund 20% of global development, and Gilead will take on manufacturing and worldwide marketing and sales activities. If Galapagos chooses to co-promote filgotinib in the U.K., Germany, France, Italy, Spain, Belgium, the Netherlands and Luxembourg, the companies will share profits equally.

Write to Anne Steele at anne.steele@wsj.com.

(END) Dow Jones Newswires

December 17, 2015 07:04 ET (12:04 GMT)

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