Goodwin Procter represented Galapagos NV in connection with its announced global partnership with Gilead Sciences, Inc. for the development and commercialization of the JAK1-selective inhibitor filgotinib for inflammatory indications. Galapagos will receive an upfront payment of $725 million (a $300 million license fee and $425 million equity investment). In addition, Galapagos will be eligible for payments of up to $1.35 billion in milestones, with tiered royalties starting at 20% and a profit split in co-promotion territories.
Phase 2 trial data show that filgotinib has the potential to be an effective and well-tolerated oral therapy for patients with rheumatoid arthritis (DARWIN studies) and Crohn’s disease (FITZROY study). The companies will start Phase 3 trials in RA and Crohn’s in 2016 pending the successful outcome of discussions with regulatory authorities.
The transaction has been approved by the boards of both companies, and is subject to customary closing conditions and clearance under the Hart-Scott Rodino Antitrust Improvements Act. For additional details on the transaction and partnership, please see the press release.
Galapagos (Euronext & NASDAQ: GLPG) is a clinical-stage biotechnology company specializing in the discovery and development of small molecule medicines with novel modes of action. The company is headquartered in Mechelen, Belgium, with facilities in The Netherlands, France and Croatia.
Gilead Sciences (Nasdaq: GILD) is a biopharmaceutical company that discovers, develops and commercializes innovative therapeutics in areas of unmet medical need. The company has operations in more than 30 countries worldwide and is based in Foster City, California.
This transaction follows Goodwin’s representation of Galapagos in its $275 million U.S. initial public offering and concurrent private offering in Europe in May 2015. Led by Mitch Bloom and Michael Bison, the IPO was one of the top three largest fundraises by a foreign private issuer in the life sciences sector in the past five years.