July 18, 2008
Galapagos Reaches First Milestone in Osteoporosis Collaboration
Galapagos has reached the first milestone in its osteoporosis collaboration with Eli Lilly and Company, triggering a payment of E1 million from Lilly.
In December 2007, Lilly and Galapagos initiated a program to develop new medicines for the treatment of osteoporosis. The agreement provides Lilly access to 12 of Galapagos's novel proprietary osteoporosis targets that play a role in bone formation. Galapagos is responsible for the development of drug candidates through to Phase IIa clinical Proof of Concept.Under the terms of the agreement, Lilly will have the exclusive option to further develop and commercialize these candidates on a worldwide basis. Galapagos will have the right to further develop and commercialize compounds for which Lilly does not exercise its option. In addition to the E3 million upfront payment received from Lilly, Galapagos is eligible to receive up to E88 million in discovery, development and regulatory milestones for each target program.
Onno van de Stolpe, Galapagos's CEO, said: "The achievement of this first milestone within six months of initiating the alliance with Lilly demonstrates Galapagos's ability to deliver on its commitments in line with expectations. Each milestone that Galapagos reaches in its pharma alliances reduces both the scientific and financial risk of these programs."