Advertisement US FTC clears Galapagos and Gilead's global partnership on filgotinib - Pharmaceutical Business review
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US FTC clears Galapagos and Gilead’s global partnership on filgotinib

Galapagos and Gilead Sciences have secured approval from the US Federal Trade Commission (FTC) for their global partnership agreement on filgotinib.

The deal is anticipated to close by the end of this month, earlier than scheduled.

Galapagos will receive an upfront payment of $725m, which includes a license fee of $300m.

Gilead will make a $425m equity investment in Galapagos by subscribing for shares at a price of €58 per share.

Once the shares are issued, Gilead will own about 15% of the outstanding share capital of Galapagos, based on the dollar to euro exchange rate at closing.

Galapagos is also eligible for payments about $1.35bn in milestones, with tiered royalties beginning at 20% and a profit division in co-promotion territories.

Filgotinib is a highly selective JAK1 inhibitor discovered and developed by Galapagos using its target and drug discovery technology platform.

Phase 2 trial data demonstrated that filgotinib has the potential to be an effective and well-tolerated oral therapy for patients with rheumatoid arthritis and Crohn’s disease.

The companies will start phase 3 trials in RA and Crohn’s later this year after the successful outcome of negotiations with regulatory authorities.