Galapagos plunges as GSK gives up rights to developmental drug

Along with presenting first-half 2014 financial results today, Belgian biotech group Galapagos (Euronext: GLPG) said its partner, UK pharma giant GlaxoSmithKline (LSE: GSK) had stopped a joint drug development project over concerns about adverse effects.

The news caused Galapagos’ share to fall 9.5% to 12.78 euros, a two year low. Galapagos, which is developing several new drugs with large pharmaceutical firms, said GSK had decided to end work on its drug GSK2586184 – the Belgian firm’s Jak1 inhibitor - for treatment of ulcerative colitis and psoriasis after tests showed it did not combine well with certain cholesterol drugs.

GSK informed Galapagos that [quote]: "GSK have assessed the overall risk:benefit profile of GSK2586184 and have elected to terminate all current indications where GSK2586184 is administered orally for chronic immune-inflammatory diseases (SLE, UC, psoriasis). As disclosed in February 2014, futility was demonstrated in SLE at an early interim analysis of an adaptive Phase IIa/b study. For ulcerative colitis and psoriasis, GSK has elected to terminate development principally as a result of the statin drug-drug interaction (DDI) study. Development options for GSK2586184 in other potential indications are presently being explored by GSK."