Galapagos to buy ProSkelia for $16.5M

Belgian drug-discovery firm Galapagos NV has entered into a definitive agreement with the UK-based ProStrakan Group to acquire its French unit, ProSkelia SASU, in return for shares worth 12.5 million euros ($16.5 million).

ProSkelia, which is engaged in drug discovery and development in bone diseases, was the 2002 spin-out of Aventis' Bone Disease Unit and was acquired in 2004 by the Strakan Group to form ProStrakan. The assets that Galapagos acquires include ProSkelia's bone disease-focused R&D operations, as well as a product portfolio of three preclinical products in osteoporosis, bone metastasis and cachexia. The portfolio will contribute to Galapagos' goal of having multiple clinical programs in bone and joint diseases in 2008.

The transaction includes an exclusive option and license to estradiol glucoside, a product that has successfully completed a Phase IIa clinical study for treatment of menopausal hot flashes. With the acquisition, ProSkelia's ongoing R&D partnerships with Amgen, Genentech and Novartis will be transferred to Galapagos, which will receive annual revenues from these partnerships, as well as 25% of downstream milestones and royalties.