Gilead to Raise Stake in Galapagos with ~$5.1B Deal

 Gilead to Raise Stake in Galapagos with ~$5.1B Deal

Gilead to Raise Stake in Galapagos with ~$5.1B Deal

Shots:

  • Galapagos to receive $3.95B upfront and $1.1B equity investment. Gilead to get rights of Galapagos’ GLPG1690 for IPF, option rights of GLPG1972 for OA in the US and option rights of all Galapagos’ current and future clinical programs (Ex-EU)
  • Gilead has an option for GLPG1972 and will pay $250M license fee, $200M post to 2EPs meet with up to $550M as regulatory & commercial milestones. Additionally, will pay $325M milestones post GLPG1690 approval to Galapagos in the US
  • Galapagos to receive $150M option payment/program with royalties from 20-24% on sales of all Galapagos’ clinical program including 6 in clinical-stage & 20+ preclinical program and drug discovery platform. Gilead’s equity investment will consist of $158.61/Galapagos share representing 30 day premium of 20% and will increase Gilead’s stake from 12.3% to 22%. The transaction is expected to close in Q3’19
  • Additionally, the companies amended their 2015 agreement which provides Galapagos exclusive rights of filgotinib in Belgium, the Netherlands and Luxembourg with equal sharing in development cost globally, in lieu of the 80/20 cost split provided by the 2015 agreement

Click here to read full press release/ article | Ref: Gilead | Image: Atelier Ten

Tuba Khan

Tuba Khan is Senior Editor at PharmaShots. She is curious, creative, and passionate about recent updates and innovation in the Life sciences industry. She covers Biopharma, MedTech, and Digital health segments. Tuba also has an experience of digital and social media marketing and runs the campaigns independently. She can be contacted on tuba@pharmashots.com

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