Companies’ two partnerships could bring Galapagos over $851 million before royalties.

Galapagos received a total of €3.6 million (roughly $5.18 million) from Merck & Co. on the achievement of separate milestones in its metabolic disease and inflammatory disease alliances. Both partnerships were set up during 2009.

Galapagos has now obtained a total of €7.6 million (approximately $10.94 million) from Merck in up-front and milestone payments. The development of multiple products could take Galapagos up to €592 million (roughly $851.85 million) in discovery, development, and regulatory milestones plus sales royalties.

The companies’ metabolic disease alliance was established in January 2009 and initially focused on diabetes and obesity. The deal was expanded in October to include small molecule drugs against atherosclerosis. Galapagos is responsible for target and small molecule lead discovery. Merck has the option to acquire an exclusive license to each candidate.

Exercising an option would then give Merck full responsibility for product development and commercialization. Galapagos retains rights to any compound not licensed by its partner. The extended alliance means Galapagos could receive up to €400 million (about $575.58 million) in research, regulatory, and sales-related milestones plus sales royalties.

The inflammatory disease alliance was signed in April 2009. It could be worth over €192 million (approximately $276.28 million) for multiple products, excluding future sales-related milestones and royalties.

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