Galapagos NV and ProStrakan Group achieved the third milestone under Galapagos' collaboration with Novartis in antibodies for bone-related diseases. This milestone triggers a payment of $1.5 million to Galapagos, of which Galapagos will pay $1.1 million to ProStrakan per their December 2006 agreement.

The collaboration was initially formed between Novartis and ProSkelia SASU (formerly a subsidiary of ProStrakan) in September 2006. Under the terms of the original agreement with Novartis, total milestones could exceed $100 million, with royalties payable on commercialization. The first milestone payment, related to intellectual property, was announced in December 2006. The collaboration was transferred to Galapagos as part of its acquisition of ProSkelia from ProStrakan in December 2006. Under the terms of Galapagos' acquisition of ProSkelia, Galapagos and ProStrakan split milestone and royalty income from agreements existing at the time of the acquisition 25% for Galapagos and 75% for ProStrakan, while Galapagos retains all R&D fees.

Dr. Wilson Totten, chief executive of ProStrakan, remarked, "In addition to the commercialization of existing products, we continue to benefit from ongoing milestone payments associated with our ongoing arrangement with Novartis and Galapagos. I look forward to further revenues in due course as a result of this collaboration."

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