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Servier and Galapagos Initiate Strategic Alliance in Osteoarthritis

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Servier and Galapagos NV have announced that they have entered into a multi-year strategic alliance to develop new therapies in osteoarthritis (OA).

The alliance between Servier and Galapagos builds on novel OA drug targets discovered by Galapagos through its proprietary platform. Galapagos will be responsible for the discovery and development of new small molecule candidate drugs against these targets. Some of the OA-research programs are in the advanced stages of drug discovery.

Servier will have an exclusive option to license each small molecule program after the completion of Phase I clinical trials by Galapagos. Upon exercise of each option, Servier will be responsible for the further clinical development, registration and commercialization. For any marketed products, Galapagos retains exclusive U.S. commercialization rights.

Under the terms of the agreement, Galapagos will receive research access payments of €7 million from Servier. 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.

"We will leverage Galapagos' novel targets and drug discovery capabilities through this alliance with Servier, our eighth risk-sharing alliance with a pharmaceutical company," said Onno van de Stolpe, CEO of Galapagos. "Retaining the US rights to any products from this alliance is important to Galapagos, especially as the US has a large need for disease-modifying osteoarthritis therapies."

"This alliance 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. "Through this collaboration with Galapagos, we gain access to validated OA targets and molecules that have shown promise in altering the course of the disease," said Bernard Marchand, Head of Research at Servier.