Mechelen, Belgium; 8 February 2011 - Galapagos NV (Euronext: GLPG) announced today that it reached milestones in its osteoarthritis alliance with Servier, resulting in payments in 2010 revenues totaling €4 million from Servier.
In July 2010, Servier and Galapagos announced their alliance to develop new medicines for the treatment of osteoarthritis. Galapagos is responsible for the discovery and development of new candidate drugs and Servier has an exclusive option to license these after the completion of Phase I clinical trials by Galapagos. To date, Galapagos has received a total of €11 million in payments from Servier under the alliance.
"We are delighted to reach the first milestones in the osteoarthritis alliance with Servier just six months after initiating the alliance," said Onno van de Stolpe, Galapagos' CEO. "The milestones announced today involve the optimization of molecules that have shown promise in altering the course of osteoarthritis."
"We are very pleased with the progress of our alliance with Galapagos so far. This is in line with Servier's commitment to develop disease-modifying drugs for sufferers of uncured diseases, such as OA, a debilitating disease that affects 12% of the world population, leading to severe and costly handicaps," said Emmanuel Canet, Head of R&D at Servier.
About Galapagos' osteoarthritis alliance with Servier
The alliance between Servier and Galapagos builds on novel osteoarthritis drug targets discovered by Galapagos through its proprietary platform. For any marketed products, Servier will have the rights to development, registration and commercialization, but Galapagos retains exclusive U.S. commercialization rights. Galapagos is also eligible to receive discovery, development, regulatory and other milestone payments that could reach €290 million, plus royalties upon commercialization of products outside the U.S. covered under the agreement.
Osteoarthritis (OA) is the most common form of arthritis, typically affecting people aged 45 and older. It is a degenerative disease characterized by joint destruction and loss of cartilage. Cartilage is the slippery tissue that covers the ends of bones in a joint. Healthy cartilage allows bones to glide over one another. It also absorbs energy from the shock of physical movement. In OA, the surface layer of cartilage breaks down and wears away. This allows bones under the cartilage to rub together, causing pain, swelling, and loss of motion of the joint. Over time, the joint may lose its normal shape. Also, bone spurs called osteophytes - may grow on the edges of the joint. Bits of bone or cartilage can break off and float inside the joint space. This causes more pain and damage. No currently available treatments prevent OA or even reverse or block the disease process. Treatment of OA involves weight control, exercise, and pain relief, most frequently with non-steroidal anti-inflammatory drugs (NSAIDs) that relieve the symptoms without changing the course of the underlying disease. Many OA patients have pain that persists despite these measures and often then have to undergo costly surgical procedures to replace their damaged joints. It is expected that with the aging of the population, more individuals will be prone to develop OA. As mobility of seniors is of high importance to maintaining a high quality of life, preventing the severity of OA is seen as an immense clinical need over the next decade.
Servier is a privately-run research based pharmaceutical company with a 2010 turnover of €3.7 billion. Servier is dedicating 25% of its turnover to Research & Development in cardiovascular, metabolic, neurological, psychiatric and bone and joint diseases as well as oncology. Servier is established in 140 countries worldwide with over 20,000 employees. More info at: www.servier.com
Galapagos (Euronext: GLPG; OTC: GLPYY) is a mid-size biotechnology company specialized in the discovery and development of small molecule and antibody therapies with novel modes-of-action. The Company is progressing one of the largest pipelines in biotech, with seven clinical and over 50 small molecule discovery/pre-clinical programs. Through risk/reward-sharing alliances with GlaxoSmithKline, Lilly, Janssen Pharmaceutica, Roche and Servier, Galapagos is eligible to receive up to €2.5 billion in downstream milestones, plus royalties. The Galapagos Group has over 800 employees and operates facilities in seven countries, with global headquarters in Mechelen, Belgium. More info at: www.glpg.com
| Servier Laboratories|
Servier Communication Department
Tel: +33 1 55 72 40 82
| Galapagos NV|
Onno van de Stolpe, CEO
Tel: +31 6 2909 8028
Elizabeth Goodwin, Director Investor Relations
Tel: +31 6 2291 6240
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