Galapagos Receives $3.57M for Reaching Milestone in Osteoporosis Collaboration with Lilly

Galapagos reached a milestone in its osteoporosis collaboration with Eli Lilly, triggering a payment of €2.5 million from Lilly. To date Galapagos has received a total of €3.9 million in milestone fees.

The original agreement, initiated in December 2007 with €3 million up front, provides Lilly access to 12 of Galapagos’ osteoporosis targets and drug discovery programs. Galapagos is eligible to receive up to €88 million for each target program in discovery, development, and regulatory milestones. Should a product be commercialized, Galapagos could receive up to €130 million in one-time sale-related milestones and up to double-digit royalties on worldwide sales.

Galapagos is responsible for the development of drug candidates through to Phase IIa proof of concept. Lilly has the exclusive option to further develop and commercialize these candidates on a worldwide basis. Galapagos has the right to further develop and commercialize compounds for which Lilly does not exercise its option.

The first milestone was achieved in July 2008 and triggered a €1 million fee. The current milestone was reached as one of the programs entered the next phase of medicinal chemistry operation.