Servier in 300-millon-euro deal with Galapagos to target osteoarthritis

Leading independent French drugmaker Laboratoires Servier has entered into a multi-year strategic alliance with Belgium-based Galapagos to develop new therapies in osteoarthritis (OA).

The alliance between Servier and Galapagos builds on novel OA drug targets discovered by Galapagos through its proprietary platform. The latter will be responsible for the discovery and development of new small molecule candidate drugs against these targets. Some of the OA-research programs are in the advanced stages of drug discovery. Servier will have an exclusive option to license each small molecule program after the completion of Phase I clinical trials by Galapagos. Upon exercise of each option, Servier will be responsible for the further clinical development, registration and commercialization. For any marketed products, Galapagos retains exclusive US commercialization rights.

Under the terms of the deal, Galapagos will receive research access payments of 7 million euros ($8.6 million) from Servier. The Belgian firm is also eligible to receive discovery, development, regulatory and other milestone payments that could reach 290 million euros, plus royalties upon commercialization of products outside the USA covered under the agreement.