Galapagos NV entered into a strategic collaboration with NovAliX in which Galapagos’ research and discovery capabilities and exclusively related employees based in Romainville, France, will be transferred to NovAliX, a drug discovery-focused contract research organization (CRO). 

The agreement follows Galapagos’ renewed focus on its key therapeutic areas of oncology and immunology, and the strategic reorientation of the company into a fit-for-purpose research and development (R&D) organization which aims to accelerate innovation, reduce risks and shorten drug development timelines.

Under the terms of the agreement, NovAliX will acquire Galapagos’ drug discovery and research activities conducted in Romainville, France. As a result of the acquisition Galapagos’ employees in Romainville who are exclusively dedicated to the operation of these activities will be transferred to NovAliX who is dedicated to assuming all ongoing research and discovery activities in Romainville.

In return, Galapagos is committed to utilizing the research capabilities and expertise of NovAliX through a five year-collaboration and within the context of the company’s R&D portfolio. The financial impact is included in Galapagos’ previously announced 2023 cash burn guidance in the range of €380-420 million. The transaction is subject to customary closing conditions and is anticipated to close in July 2023.

“Last year, we announced our Forward, Faster strategy, and the strategic reorientation of our company into a fit-for-purpose R&D organization,” said Paul Stoffels, CEO and Chairman of Galapagos. “In light of our renewed focus and our goal to safeguard the continued employment of our colleagues at our research site in Romainville, we are extremely pleased that we have come to an agreement with NovAliX. “I would like to thank our teams and NovAliX for their trust and commitment throughout the past several months to make this happen. I am confident that our transferred colleagues together with the teams at NovAliX will thrive and that they will continue to contribute to the future success of Galapagos as part of this long-term collaboration.”

Stephan Jenn, president of NovAliX said: “We are extremely pleased to enter into an integrated drug discovery collaboration with Galapagos. The acquisition of Galapagos’ drug discovery and research activities in Romainville, including its highly skilled team, is the perfect fit for NovAliX in order to complement our DNA-Encoded-Libraries database and cryo-EM3 driven discovery engine. It positions us as a key player in the field, offering the full scope of drug discovery capabilities and innovative technologies in kidney diseases, fibrosis and immunology, complementing our existing expertise in oncology and infectious diseases.”