Galapagos NV Receives EUR3.5 Million in Milestones in Osteoarthritis Alliance With Servier
MECHELEN, BELGIUM--(Marketwire - March 02, 2012) - Galapagos NV (Euronext: GLPG) and Servier announced today the achievement of milestones under their alliance agreement in osteoarthritis. These milestones trigger payments to Galapagos totalling EUR3.5 million, which will contribute to the Company's 2011 financial results.
In July 2010, Servier and Galapagos announced their alliance to develop new medicines for the treatment of osteoarthritis (OA). Galapagos is responsible for the discovery and development of new candidate drugs, and Servier has an exclusive option to license these after the completion of Phase I clinical trials.
"We are pleased that the molecules derived under the OA alliance have met the agreed criteria," said Onno van de Stolpe, Chief Executive Officer of Galapagos. "This achievement brings us closer to delivering a pre-clinical candidate."
"This is in line with Servier's commitment to develop disease-modifying drugs for sufferers of uncured diseases, such as OA, a debilitating disease that affects 12% of the world population, leading to severe and costly handicaps," said Bernard Marchand, Head of Discovery Research at Servier.
About Galapagos' osteoarthritis alliance with Servier
The alliance between Servier and Galapagos builds on novel osteoarthritis drug targets discovered by Galapagos through its proprietary platform. For any marketed products, Servier will have the rights to development, registration and commercialization, but Galapagos retains exclusive U.S. commercialization rights. Galapagos is also eligible to receive discovery, development, regulatory and other milestone payments that could reach EUR290 million, plus royalties upon commercialization of products outside the U.S. covered under the agreement.
Osteoarthritis (OA) is the most common form of arthritis, typically affecting people aged 45 and older. It is a degenerative disease characterized by joint destruction and loss of cartilage. No currently available treatments prevent OA or even reverse or block the disease process. Treatment of OA involves weight control, exercise, and pain relief, most frequently with non-steroidal anti- inflammatory drugs (NSAIDs) that relieve the symptoms without changing the course of the underlying disease. Many OA patients have pain that persists despite these measures and often then have to undergo costly surgical procedures to replace their damaged joints. It is expected that with the aging of the population, more individuals will be prone to develop OA. As mobility of seniors is of high importance to maintaining a high quality of life, preventing the severity of OA is seen as an immense clinical need over the next decade.
Servier is a privately-run research based pharmaceutical company with a 2011 turnover of EUR3.9 billion. Servier is dedicating 25% of its turnover to Research & Development in cardiovascular, metabolic, neurological, psychiatric and bone and joint diseases as well as oncology. Servier is established in 140 countries worldwide with over 20,000 employees. More info at: www.servier.com
Galapagos (Euronext: GLPG; OTC: GLPYY) is a mid-size biotechnology company specialized in the discovery and development of small molecule and antibody therapies with novel modes-of-action. The Company is progressing GLPG0634, as well as one of the largest pipelines in biotech, with four programs in development and over 50 discovery programs. The Galapagos Group has over 800 employees and operates facilities in six countries, with global headquarters in Mechelen, Belgium. More info at: www.glpg.com
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