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 commercialization on a worldwide basis.
The alliance will utilize the natural product compound collection and chemistry capabilities of BioFocus DPI, Galapagos' services division. Galapagos will have the right to further develop and commercialize compounds for which GSK does not exercise its option.
Galapagos will receive total upfront fees of up to €3.5 million from GSK, depending on the total number of programmes within the collaboration. Galapagos could be eligible to receive up to €95 million in upfront fees, development and regulatory milestones payments for each product candidate.
If a product is commercialized, Galapagos may receive up to €120 million for achievement of specific sales milestones. Galapagos is also eligible to receive up to double-digit royalties on worldwide sales of alliance products.
"This is our first alliance outside bone and joint diseases. It shows that Galapagos can generate significant business in new therapeutic areas," said Onno van de Stolpe, Galapagos' CEO.
"The alliance will rely heavily on BioFocus DPI's natural product discovery capabilities. This alliance fits within our strategy of executing risk/reward sharing deals with big pharma and at the same time underscores our M&A approach and successful integration of DPI into the BioFocus service division."