Agreements

Date: 2013-03-06

Type of information: Milestone

Compound:

Company: Servier (France) Galapagos (Belgium)

Therapeutic area: Cancer - Oncology

Type agreement: research - R&D - development - commercialisation

Action mechanism:

Disease:

Details:

• On October 3, 2011, Servier and Galapagos have entered into a multi-year strategic alliance to develop new cancer therapies. The alliance builds on a combination of novel Galapagos and Servier targets in oncology. Galapagos will be responsible for the discovery and development of new candidate drugs against these targets. Servier will have an exclusive option to license each small molecule program after the completion of pre-clinical development by Galapagos. Upon exercise of each option, Servier will be responsible for further clinical development, registration and commercialization. Galapagos retains exclusive rights for clinical development, registration and commercialization in the United States.

Financial terms:

Under the terms of the agreement, Galapagos will receive research access payments of €2 million from Servier. Galapagos is also eligible to receive discovery, development, regulatory and other milestone payments that could reach €260 million, plus royalties upon commercialization of products by Servier.

Latest news:

• On March 6, 2013, Galapagos has announced the achievement of undisclosed milestones in the alliances with Servier in osteoarthritis and oncology. These milestones triggered payments to Galapagos totaling €7.5 million, contributing to 2012 Group revenues. The osteoarthritis (OA) alliance with Servier was initiated in July 2010 to deliver new oral medicines. In October 2011 Galapagos announced a second alliance with Servier for innovative treatments in oncology. In both alliances, Galapagos is responsible for the discovery and development of new candidate drugs against novel targets. Galapagos is eligible to receive in excess of €500 million in success-based milestones, plus royalties on commercial sales. The company also retains exclusive US commercialization rights to all compounds discovered.