Global Collaboration Of Gilead Sciences With Galapagos For Filgotinib Benefits Patients

The global collaboration of Gilead Sciences with Galapagos will open new folds for both companies.

Gilead Sciences is an American-based biopharmaceutical company working to develop therapeutics. In December 2015, it entered in a deal with Galapagos for filgotinib and now, after passing through the screening of Hart-Scott-Rodino Antitrust Improvements Act, 1976, the companies have closed the deal of global collaboration for the newly discovered inhibitor that is under consideration for the cure of some serious inflammatory disease.

Galapagos is a Belgian-based biotechnology company with headquarters based in Mechelen, which discovers, innovates, and produces therapeutic. The Beligian-biotech giant discovered and produced JAK1 inhibitor in 2011 under the code GLPG0634. It has also discovered therapeutics for osteoarthritis, inflammatory diseases, ulcerative, and life-threatening diseases of lungs and digestive system.

According to company’s official website, the company has experimented filgotinib on around 700 patients. The experiment was carried out in different phases and by 2013, the Phase 2a study shows the rapid decrease in disease activity in the patients having mild to severe rheumatoid arthritis.

In future, filgotinib is likely to cure rheumatoid arthritis and Crohn’s disease. After carrying out various FITZYOR studies, Galapagos CSO, Piet Wigerinck, is confident about this inhibitor. He said, “Filgotinib is the first JAK inhibitor to show efficacy in Crohn’s disease, a disease with still few treatment options today.” 

Due to the favorable results and the potential future of the new drug, the US-based company has collaborated with Mechelen biotech. The collaboration entitles the Belgian-based company to receive $300 million in form of license fee payment.

Furthermore, Gilead has also made equity investment of $425 million in Galapagos by acquiring more than 6 million shares in the company with a share price of $63.53 – equivalent to €58 per share. As a result, it now has almost 15% holding in the company’s share capital. The transaction complied with Belgium Transparency Law, 2007.

Through this deal, Galapagos has an option to co-promote filgotinib in UK, Germany, Italy, France, Spain, Belgium, the Netherlands, and Luxembourg. If it uses its option, then it will book sales in the country and the collaborating companies will share the profit(s) equally. The organization will also co-fund up to 20% global development activities while its partner biotech giant will ensure efficient manufacturing, fair marketing, and effective distribution.

Gilead’s current position in the financial market is strong. The company has a share price of $89.9. Although the stock price has declined by 2.11% however, the analysts have categorized Gilead stock as ‘Buy’, which is a good indicator for the management as well.