Gilead Galapagos Collaboration Agreement

Gilead and Galapagos also agreed to modify some concepts related to the development and commercialization of filgotinib, with an advanced level of experimental binding for rheumatoid arthritis and other inflammatory diseases. The companies have recently completed the extensive 3-FINCH program in rheumatoid arthritis and plan to obtain approval for the drug in the United States and Europe by the end of the year. Under the revised agreement, Galapagos will become more involved in the overall filgotinib strategy and will participate more widely in the marketing of the product in Europe, which will establish a commercial presence on an accelerated timetable. Those who wonder what the first big step of the new CEO of Gilead Sciences (NASDAQ:GILD) now has an answer. On Sunday, Daniel O`Day announced that biotechnology had entered into “transformative research and development cooperation” with Galapagos NV (NASDAQ:GLPG). The total price of the 10-year contract was nearly $5.1 billion. Under the terms of the agreement, the closing of this transaction will trigger a $3.95 billion down payment by Gilead to Galapagos. In addition, Gilead took a stake in Galapagos for approximately $1.1 billion (approximately 960 million euros) by subscribed to new shares at a price of 140.59 euros per share, including issue premiums. Gilead owns 13,589,686 common shares of Galapagos, representing approximately 22% of Galapagos` current share capital. In a way, Gilead`s deal with galapagos might even be better than a buyout. The company will immediately significantly expand its pipeline into one of the most lucrative therapeutic areas. While the $5.1 billion price tag is not a change in chump, it doesn`t use too many Gilead cash deposits.

The Galapagos agreement leaves a lot of money for Gilead to do other business. For more information about Gilead Sciences, please visit the company`s website at www.gilead.com, follow Gilead on Twitter (@GileadSciences) or call Gilead Public Affairs at 1-800-GILEAD-5 or 1-650-574-3000. “What a fantastic moment on our 20th anniversary to sign this pioneering contract with our great partner Gilead,” said Onno van de Stolpe, General Manager of the Galapagos. “Galapagos has been very effective in target identification and drug discovery and has developed new molecules from research at the clinic. We will benefit greatly from Gilead`s know-how and infrastructure, and we believe this collaboration will accelerate the road to advance our pipeline. This agreement aims to maximise innovation on the basis of the development of new modes of action. With the capital available by Gilead, we want to innovate for patients. This communication may contain forward-looking statements regarding galapagos, including statements about Galapagos` strategic ambitions, the expected closing date of the transaction with Gilead, notifications and authorizations regarding the transaction, the amount and date of a possible future milestone, Gilead Opt-in and/or royalties, mechanism of action, potential safety and efficacy of filgotinib, GLPG1690 and/or GLPG1972, expected date of clinical trials with filgotinib, GLPG1690 and/or GLPG1972, progress and results of these studies, as well as information on the regulatory pathway for filgotinib and the date of submission of marketing approvals.

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