Date: 2017-07-27
Type of information: Exercise of an option agreement
Compound: small molecule candidate drugs including GLPG1972/S201086
Company: Galapagos (Belgium) Servier (France)
Therapeutic area: Rheumatic diseases - Inflammatory diseases – Bone diseases
Type agreement: R&D - development - licensing
Action mechanism:
- GLPG1972/S201086 targets a cartilage degrading enzyme called ADAMTS-5. This mechanism of action has been confirmed in two animal models.
Disease: osteoarthritis
Details:
- • On July 1, 2010, Servier and Galapagos have announced that they have entered into a multi-year strategic alliance to develop new therapies in osteoarthritis (OA). The alliance builds on novel OA drug targets discovered by Galapagos through its proprietary platform. Galapagos will be responsible for the discovery and development of new small molecule candidate drugs against these targets. Some of the OA-research programs are in the advanced stages of drug discovery. Servier will have an exclusive option to license each small molecule program after the completion of Phase I clinical trials by Galapagos. Upon exercise of each option, Servier will be responsible for the further clinical development, registration and commercialization. For any marketed products, Galapagos retains exclusive U.S. commercialization rights.
Financial terms:
- Under the terms of the agreement, Galapagos will receive research access payments of €7 million from Servier. Galapagos is also eligible to receive discovery, development, regulatory and other milestone payments that could reach €290 million, plus royalties upon commercialization of products outside the U.S. covered under the agreement.
Latest news:
- • On July 27, 2017, Servier announced that it has exercised its option to develop novel osteoarthritis molecule GLPG1972/S201086 from Galapagos, thus obtaining global commercial rights outside the U.S.
- The phase 1 trial run by Galapagos met all its safety and pharmacokinetic targets. Phase 1 in healthy volunteers also demonstrated that GLPG1972/S201086 reduced ARGS neoepitope, an important cartilage breakdown biomarker, by more than 50% within two weeks. Galapagos is currently exploring safety and pharmacokinetics of G1972/S201086 in a phase 1b trial in osteoarthritis patients in the US. A Phase 2 program is currently being prepared with this drug candidate.
- Galapagos will receive a €6 million license fee from Servier and is eligible to a total of €290 million in success-based milestones from the collaboration. Servier and Galapagos will make joint decisions on the development through a joint steering committee. Galapagos has full US commercial rights to GLPG1972/S201086 and is entitled to receive royalties on commercial sales outside the US.
- • On November 20, 2015, Galapagos announced that GLPG1972, a first-in-class candidate drug aiming at treating osteoarthritis, has been dosed in a Phase 1 First-in-Human study. GLPG1972 has a novel mode of action discovered by Galapagos under its collaboration agreement with Servier, and has potential application in osteoarthritis. Galapagos will receive a €3.5 million milestone payment from Servier for this achievement.
- • On August 5, 2014, Galapagos announced the achievement of a second partial milestone, thereby completing the nomination of a new pre-clinical candidate in the osteoarthritis alliance with Servier. On March 7, Galapagos announced the receipt of €2M as the first partial milestone. This new payment remains undisclosed and contributes to Group revenues in the first half of 2014. GLPG1972 is the second candidate drug that Galapagos delivers in the osteoarthritis alliance with Servier.
- • On July 23, 2013, Galapagos has announced the achievement of a late stage discovery milestone for small molecules against a novel target in the osteoarthritis alliance with Servier. This milestone triggered a payment to Galapagos of €3 million and will contribute to Group revenues in the first half of 2013.
Is general: Yes
