08 april 2021
22:42
–
Despite serious setbacks, partner Gilead maintains confidence in Galapagos. The Americans own 25 percent of the Mechelen biotech company and will not sell shares until August 2024.
–
The Relationship Between Gilead and Galapagos
is not hanging on the ropes after the heavy setbacks with Galapagos’ star resource Jyseleca.
–
The Mechelen biotech company reports that Gilead has agreed to extend its so-called lock-up period until August 22, 2024. This means that the American partner will not sell Galapagos shares until that date. Gilead is by far the largest shareholder and, according to the latest available information, has a 25 percent stake.
–
Previously, a two-year lock-up had been provided, which would expire in August this year. Gilead was then free to reduce its stake to 20 percent between 2021 and 2024. That part of the original agreement is now being amended.
–
“We noticed some uncertainty among investors about Gilead’s commitment to our partnership. We thought this could be a clear signal. We submitted it to Gilead and it had no problem with it. It was that simple. Whether we should have given something in return? No nothing. Sometimes things are not complicated, ‘says Onno van de Stolpe, the founder and CEO of Galapagos.
–
We submitted this to Gilead and it had no problem with it. It was that simple. Whether we should have given something in return? No nothing.
Onno van de Stolpe
CEO Galapagos
–
–
–
“We fully support our long-term partnership with Galapagos. We continue to see the value of the Galapagos approach, ”said Andrew Dickinson, Gilead’s Chief Financial Officer.
–
The two companies went out in August 2019 a ten-year collaboration for research and development. The agreement gave Gilead access to Galapagos’ entire research pipeline. Gilead received an exclusive license and option rights to develop and commercialize all current and future programs outside of Europe.
–
–
Gilead put 3.5 billion euros on the table for this. And as part of that transaction, it injected 1.1 billion of capital into Galapagos. It then paid 140.59 euros per share. A little later it exercised a warrant (the right to buy a share at a predetermined price) at the same price. The deal put Galapagos on the world map at the time.
–
Gilead, however, had little pleasure from entering Galapagos until now. The American pharmaceutical watchdog FDA last year did not give the green light for the commercialization of Jyseleca in the US due to unwanted side effects at a high dose of the drug.
–
Gilead pulled the plug on the US marketing of Jyseleca for rheumatism treatment. Since then, the Galapagos share price has plummeted by more than two thirds. The drug is on the market in Europe and may still have potential to treat inflammatory bowel disease. In addition, this year Galapagos and Gilead will gain insight into the potential of the Toledo project, an investigation into a new generation of drugs for autoimmune disorders such as rheumatism.
–
Gilead owns 25 percent of Galapagos, and even has the option to increase that stake – by 2024 at the latest – up to 29.9 percent through the exercise of a remaining warrant.
–
–
