Within this additional program, Galapagos will progress a disease-modifying drug towards completion of clinical phase IIa, at which point GSK’s R&D organization will be responsible for the late-stage development, production and marketing of the drug. Furthermore, GSK may add a second osteoarthritis drug discovery program against a selected GSK target into the alliance.
Upon achievement of a future milestone event already defined in the original alliance, Galapagos will receive an additional cash payment from GSK of E3 million for initiating the first additional program, plus E3 million if GSK brings a second program under the alliance. In total, for products arising from two new programs brought into the alliance, Galapagos would receive up to E32.3 million in development milestones upon achievement of clinical proof-of-concept by Galapagos.
Upon successful completion of all agreed criteria, total cash value for Galapagos, including the E4.4 million equity investment, would be E61.7 million for each product, plus up to double-digit royalties on GSK worldwide sales. Galapagos could obtain up to E186 million in total milestones if the expanded collaboration yields two marketed products.