Our partnering strategy is to establish collaborations with major pharmaceutical and biotechnology companies to support development of internal programs through milestone payments and downstream royalties.

Eli Lilly

In December 2007, Galapagos signed a global collaboration agreement with Eli Lilly to discover and develop new medicines for the treatment of osteoporosis. The agreement provides Lilly access to 12 of Galapagos’ proprietary osteoporosis targets and drug discovery programs. Galapagos will be responsible for the development of drug candidates through to Phase IIa clinical Proof of Concept.

GlaxoSmithKline

June 2006, Galapagos signed a broad alliance with GSK to discover and develop breakthrough medicines in osteoarthritis. This multi-target, multi-year alliance runs from target discovery through to delivery of a clinical proof of concept. In June 2007, the scope of the alliance was expanded to include up to two drug discovery programs on selected GSK drug targets. In December 2008, Galapagos announced that the alliance was further expanded to include two additional drug targets. In December 2009, the alliance was again expanded to include additional drug discovery programs based on novel drug target GT622. Based on these expansions, the alliance is now worth more than €200 million in milestones, plus up to double-digit royalties.

In December 2007, GSK and Galapagos entered a strategic alliance to develop novel antibacterial and antiviral therapeutics. Galapagos is responsible for the discovery and development of natural product small molecule drug candidates through to clinical Proof of Concept, at which point GSK will have exclusive option to license each compound for further development and commercialization on a worldwide basis. The alliance utilizes the natural product compound collection and chemistry capabilities of BioFocus DPI, Galapagos’ services division. In January 2009, the alliance in antibacterials and antivirals was expanded to include three more discovery targets.

Janssen Pharmaceutica

In October 2007, Galapagos announced a multi-target alliance with Janssen Pharmaceutica NV, a Johnson & Johnson company, to discover and develop novel small-molecule therapeutics for the treatment of rheumatoid arthritis. Galapagos is responsible for the discovery and development of drug candidates through to clinical Proof of Concept, at which point Janssen will have an exclusive option to license each compound for further development and commercialization on a worldwide basis.

Merck & Co

In January 2009, Galapagos announced that it entered into a multi-year global strategic alliance with Merck & Co., Inc. to develop potential new therapies in obesity and diabetes. Galapagos will be responsible for the discovery and pre-clinical development of new small molecule candidate drugs based on novel Galapagos targets. Merck will have the exclusive option to license each candidate for clinical development and commercialization on a worldwide basis. Galapagos received a €1.5 million upfront fee from Merck, and is eligible to receive milestones that could potentially exceed €170 million. In October 2009 this alliance was expanded to include development of new therapies for atherosclerosis. Based on the terms of the expanded alliance, Galapagos is eligible to receive research, regulatory and sales milestone payments that may total in excess of €400 million as well as royalties upon commercialization of any products covered under the agreement.

In April 2009, Galapagos announced that it entered into a second strategic alliance with Merck & Co., this time to develop potential new therapies in inflammation. Under the terms of this agreement, Galapagos will receive an upfront fee of €2.5 million from Merck. In addition, Galapagos is eligible to receive discovery, development and regulatory milestone payments that could potentially exceed €192 million total for multiple products, as well as specific sales milestones and royalties upon commercialization of any products covered under the agreement.

MorphoSys

In November 2008, Galapagos and MorphoSys initiated an alliance to co-develop novel therapeutic antibodies in bone & joint disease. The partners combine their proprietary drug targets and unique technologies to discover and develop antibody therapies based on novel modes of action in bone & joint disease, including rheumatoid arthritis, osteoporosis and osteoarthritis. Both companies will share the research and development costs, as well as all future revenues equally.

Antibodies with high specificity towards the first target have been generated and are now being tested in disease-specific experiments. In parallel, Galapagos has applied its target discovery platform to identify additional targets for antibody development. Based on the solid progress made so far, the partners added another antibody target to the alliance in February 2010, thereby increasing the total number of programs to four.

Roche

Galapagos and Roche started their strategic alliance in COPD (chronic lung disease) in January 2010 and further expanded the alliance in May 2010. Galapagos is applying its target discovery platform to discover novel COPD targets and is responsible for the discovery and development of new small molecule candidate drugs against these targets. Roche has an exclusive option to license each small molecule program after either clinical candidate selection or completion of Phase I clinical trials. In addition, Roche has an exclusive option to license the COPD targets for the discovery and development of antibodies, peptides, siRNAs and other nucleic acids against these targets. Galapagos received a research access payment of €6 million from Roche and, through the alliance expansion, is eligible to receive discovery, development, regulatory and sales milestone payments that could potentially exceed €550 million, plus royalties upon commercialization of any products covered in the agreement.

Servier

Galapagos and Servier initiated their strategic alliance to develop new therapies in osteoarthritis (OA) in July 2010. The alliance builds on novel OA drug targets discovered by Galapagos through its proprietary platform. Galapagos is responsible for the discovery and development of new small molecule candidate drugs against these targets, some of which are in the advanced stages of drug discovery. Servier will have an exclusive option to license each small molecule program after the completion of Phase I clinical trials by Galapagos. Upon exercise of each option, Servier will be responsible for the further clinical development, registration and commercialization. For any marketed products, Galapagos retains exclusive U.S. commercialization rights. Under the terms of the agreement, Galapagos will receive research access payments of €7 million from Servier. Galapagos is also eligible to receive discovery, development, regulatory and other milestone payments that could reach €290 million, plus royalties upon commercialization of products outside the U.S. covered under the agreement.



Related publications

Sustainable drug discovery: Galapagos' alliance strategy
Hoekema, A
Pharma Focus Asia 2008,8:14-17

Galapagos and GSK: an innovative alliance in osteoarthritis
Hoekema, A
Global Outsourcing Review 2007,9(1):26-28

Sharing risks and rewards: basis for a turnkey pharma-biotech alliance in osteoarthritis
Hoekema, A
Drug Discov World. 2007 Spring:53-58

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