GSK and Galapagos NV create worldwide development alliance

UK drug major GlaxoSmithKline and Belgian drug discovery firm Galapagos NV have announced the creation of a worldwide development alliance , focussed on the field of osteoarthritis. The firms say that they will collaborate on the production of disease modifying drugs in Phase IIa proof-of- concept trials, utilizing GSK's recently-established Center of Excellence for External Drug Discovery (CEEDD). Under the terms of the deal, Galapagos will receive an upfront payment of 4.0 million euros ($5.1 million), and could receive up to 65.0 million euros on the achievement of key developmental milestones. The Belgian group is also entitled to double-digit royalty payments based on product sales. GSK has also agreed to make a 3.0 million-euro equity investment in Galapagos when a predefined clinical development goal is achieved.