A multimillion-dollar partnership going back over three years is now severed: Galapagos and Roche have decided to end their fibrosis alliance. Roche will make a payment of €5.75 million (approximately $7.48 million) to Galapagos for work completed in 2012.
With the alliance's termination, Galapagos has regained the worldwide rights to all fibrosis assays and the targets discovered in the alliance. These targets were reportedly identified in various unique human primary cell assays mimicking fibrosis. Galapagos will have received a total of €16 million (around $20.8 million) in up-front and milestone payments, including this latest payment.
The alliance Roche and Galapagos signed in December 2009 was for COPD, but it was broadened to fibrosis in December 2010. Between the initial €6 million ($7.78 million) payment and potential future payments for discovery, development, regulatory, and sales milestones, the initial agreement was said to have been worth over €406 million (roughly $526.58 million). Galapagos claims a strategic change at Roche resulted in conclusion of the alliance.
"We regret that Roche ended the alliance due to a strategic change, but the good news is that all assets have returned to Galapagos," said Onno van de Stolpe, CEO of Galapagos. "Our plan is to find another partner to continue the search for compounds against these debilitating diseases."
Galapagos also released their financial results for 2012, reporting a net loss for the full year 2012 of €5.7 million (approximately $7.4 million), or €0.22 (around 29 cents) loss per share, compared to a loss of €30.1 million ($39.1 million), or €1.13 ($1.47) loss per share in 2011.