Gilead Sciences has struck a major expansion deal with a European biotech firm to target the high-growth anti-inflammatories market.
The companies announced this week that Gilead will invest $5.1 billion into its ongoing partnership with Galapagos NV, a Belgo-Dutch company that specializes in research and development of small molecule medicines. As part of the agreement, the companies will embark on a 10-year collaboration that will allow Gilead to leverage Galapagos’ team of more than 500 scientists and drug discovery platform to develop a portfolio that includes six molecules currently in clinical trials.
Gilead’s upfront payment of $3.95 billion will allow Galapagos to expand its R&D capabilities. Galapagos will also receive a $1.1 billion equity investment from Gilead.
The companies have already buddied up to develop filgotinib, a compound being tested as a treatment for rheumatoid arthritis and inflammatory bowel disease that Gilead plans to seek approval for later this year.
Read the full Reuters report.
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