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Galapagos, Gilead Complete Filgotinib Collaboration

January 20, 2016

Triggers upfront license fee payment of $300M and equity investment of $425M

Galapagos NV and Gilead Sciences completed the closing and entry into force of their global license and collaboration agreement on filgotinib, triggering an upfront license fee payment of $300 million to Galapagos. Gilead has also made a $425 million equity investment in Galapagos and now owns 14.75% of its currently outstanding share capital.

The companies entered a collaboration for the joint development and commercialization of filgotinib in inflammatory diseases in December 2015. Galapagos co-funds 20% of global development activities and Gilead is responsible for manufacturing and worldwide marketing and sales activities. Galapagos has the option to co-promote filgotinib in the UK, Germany, France, Italy, Spain, Belgium, the Netherlands and Luxembourg, in which case the companies will share profits. Galapagos is entitled to an upfront payment of $725 million, consisting of a license fee of $300 million and a $425 million equity investment. In addition, Galapagos is eligible for payments of as much as $1.35 billion in milestones, with royalties and a profit split in co-promotion territories.