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Galapagos to Help GSK Develop Osteoarthritis Drugs; Deal Could Involve Equity Stake

NEW YORK, June 7 (GenomeWeb News) - GlaxoSmithKline and Galapagos today announced the creation of a worldwide, multi-year drug-discovery and -development alliance in osteoarthritis.

 

The pact calls for Galapago to identify genes of interest for GSK. GSK will have exclusive options to further develop and commercialize compounds on a worldwide basis, while Galapagos will have the right to further develop and commercialize compounds for which GSK does not exercise its option, the companies said.

 

Under the terms of the agreement, Galapagos will receive an upfront technology access fee of €4 million ($5.1 million) from GSK. Galapagos also stands to receive up to €65 million in success-based milestones.

 

In addition, Galapagos will receive up to double-digit royalties on commercial sales of alliance products. GSK also retains the option to make an equity investment of up to €3 million in Galapagos, according to the firms.

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