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GlaxoSmithKline and Galapagos enter strategic alliance to develop novel antibacterials and antivirals

Discovery and development of novel anti-infective medicines based on Galapagos' natural product drug discovery platform

11 Dec 2007 - GlaxoSmithKline (GSK) and Galapagos NV announced the creation of a multi-year strategic alliance to develop novel anti-infective drug candidates. GlaxoSmithKline will participate in the alliance through its Infectious Diseases Centre of Excellence for Drug Discovery (ID CEDD). Under the terms of the agreement, Galapagos will grant GlaxoSmithKline options to license product candidates that are directed against up to six anti-infective discovery targets. Galapagos will be responsible for the discovery and development of natural product small molecule drug candidates through to clinical Proof of Concept, at which point GSK will have exclusive option to license each compound for further development and commercialisation on a worldwide basis. The alliance will utilise the natural product compound collection and chemistry capabilities of BioFocus DPI, Galapagos' services division. Galapagos will have the right to further develop and commercialise compounds for which GSK does not exercise its option.
 
Galapagos will receive total upfront fees of up to EUR3.5 million from GSK, depending on the total number of programmes within the collaboration. Galapagos could be eligible to receive up to EUR95 million in upfront fees, development and regulatory milestones payments for each product candidate. If a product is commercialised, Galapagos may receive up to EUR120 million for achievement of specific sales milestones. Galapagos is also eligible to receive up to double-digit royalties on worldwide sales of alliance products.