Galapagos NV of Mechelen, Belgium, and GlaxoSmithKline (GSK) have announced a drug discovery and development alliance in osteoarthritis (OA). Galapagos will expand its portfolio of novel validated targets for OA, conduct compound screening, and develop resulting compound leads into candidate investigational drugs through to phase IIa proof of concept. GSK will have exclusive options to further develop and commercialize these compounds on a worldwide basis. The alliance will identify genes that stimulate chondrogenesis and inhibit catabolic activity in affected joints. Galapagos will receive an upfront technology access fee of approximately US$5.1 million, and may become eligible to receive as much as US$166 million in performance-based milestones (US$83 million per marketable product). Additionally, Galapagos is entitled to receive up to double-digit royalties on commercial sales of any marketed products that may arise from the alliance. Further to the agreement, on the realization of a defined future milestone, GSK will make an equity investment of up to US$3.8 million in Galapagos.

Galapagos has ongoing OA research programs and focuses on chondrocytes. These programs will be the basis of the alliance with GSK. The company has identified 11 novel targets to date that have been validated in cellular disease models, and has progressed three of these into drug discovery and initiated a hit-to-lead program on its most advanced target. The two partners believe that modulation of these targets in human chondrocytes should lead to a net production of stable cartilage and therefore be able to prevent and repair cartilage damage in patients with OA. 

—A. Techman