AbbVie, Galapagos Expand Cystic Fibrosis Drug Pact to $600 MillionBy
AbbVie and Galapagos NV, a clinical-stage pharmaceutical company based in Mechelen, Belgium, and specializing in small-molecule drug development, have expanded their agreement in cystic fibrosis (CF) to reflect the successful expansion of their CF portfolio. The companies have agreed to increase the potential milestones to Galapagos for Phase I and II achievements, bringing the remaining total milestones in the CF alliance up to approximately $600 million, from $350 million.
Other key collaboration terms remain in place: tiered royalty payments on net sales, ranging from mid-teens to 20%. Galapagos retains commercial rights to China and South Korea, and has an option to co-promote in Belgium, Netherlands, and Luxembourg.
In September 2013, Galapagos and AbbVie entered into a global collaboration agreement focused on the discovery and worldwide development and commercialization of potentiator and corrector molecules for the treatment of CF. Under the terms of the agreement, AbbVie made an upfront payment of $45 million to Galapagos. Upon successful completion by Galapagos of clinical development through to completion of Phase II development, AbbVie will be responsible for Phase III development, with financial contribution by Galapagos. Galapagos has earned $20 million in milestone payments to date and is eligible to receive up to approximately $600 million in total additional payments for developmental and regulatory milestones, sales milestones upon the achievement of minimum annual net sales thresholds and additional tiered royalty payments on net sales, ranging from mid-teens to 20%. Galapagos has commercial rights to China and South Korea, and has an option to co-promote in Belgium, Netherlands, and Luxembourg.
Galapagos has approximately 440 employees, operating from its Mechelen, Belgium headquarters and facilities in the Netherlands, France, and Croatia. ,/p>
Source: Galapagos NV