Gilead On Board, But Still No Easy Sailing for Galapagos with Phase IIa Failure

26/01/2016 - 2 minutes

Galapagos (Belgium) and Gilead (US) announced today the closing and entry into force of their global license and collaboration agreement on filgotinib, just as results are released for a phase II trial against Ulcerative colitis.

Galapagos_septemer_stocks_nasdaq_filgotinib_abbvie_gilead_dealUnder the terms of the agreement, the closing of this transaction triggers an upfront license fee payment of $300M by Gilead to Galapagos. In addition, Gilead has made a $425M (€392M) equity investment in Galapagos by subscribing for new shares at a price of €58 per share, including issuance premium.

This equates to 14.75% of Galapagos, which is a relatively huge proportion of ownership for such a Biotech. Perhaps Gilead is thinking of acquiring Galapagos further down the line – in a year or two? We speculate.

However, Galapagos have also just released phase IIa trials for another candidate (GLPG1205) in Ulcerative Colitis. Whilst good safety and tolerability profiles for this small-molecule candidate were found, unfortunately the drug failed to meet is primary endpoint in tackling this disease.

This content is available exclusively to our paying members.

Our members receive the following benefits:

  • Unlock premium articles
  • Download our industry reports
  • Remove all banner ads
  • Access 1,500+ archived posts
  • Support our independent media
Already a member? Sign in
ADVERTISEMENT
Do you want to remove this advert? Become a member!
ADVERTISEMENT
Do you want to remove this advert? Become a member!