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GEN News Highlights : Dec 6, 2006

Galapagos Adds Discovery Tools to its Services Business for $16.63M

BioFocus DPI will take control of Inpharmatica.

Galapagos acquired Inpharmatica, a drug discovery technologies company, in an all-share deal valued at EUR12.5 million, or $16.63 million. BioFocus DPI, Galapagos' drug discovery services business, will assume the commercial and scientific management of Inpharmatica, including the execution of all its current contracts.

"We are excited to add the distinguished drug discovery capabilities of Inpharmatica to our BioFocus DPI business,” comments Onno van de Stolpe, CEO. “Adding proprietary target and compound selection tools to our platform provides an even broader array of drug discovery solutions for both our internal R&D and for our services business. It will position our company further for additional turn-key deals ranging from target discovery all the way to clinical proof of concept."

The EUR12.5-million acquisition price includes EUR6 million in Inpharmatica's cash reserves. The company could also potentially earn up to EUR6.6 million in commercial milestone payments.

Galapagos expects immediate annualized operational synergies of about EUR1.5 million. In addition, the company will obtain certain downstream financial rights to Inpharmatica's internal PPAR-delta program, addressing obesity and diabetes, which has reached the stage of candidate selection.