Galapagos is tasked with conducting additional drug discovery on target that yielded the first clinical candidate.

GlaxoSmithKline is expanding its arthritis alliance with Galapagos with a €6.5 million (about $9.45 million) fee. The broadened deal will include additional drug discovery programs based on a new drug target called GT622.

Besides the up-front extension payment, Galapagos is eligible for additional success-based fees of about €12 million (roughly $17.48 million) tied to candidates developed against GT622. The collaboration is now worth more than €200 million (approximately $290.85 million) in milestones plus up to double-digit royalties.

Earlier this month Galapagos advanced the first clinical candidate under the agreement with GSK for arthritis called GLPG0555. The molecule was based on GT622, identified through Galapagos’ target discovery platform. Encouraged by this target’s promising mode of action, GSK and Galapagos have now expanded the scope of the GT622 program to increase the chances of developing a new medicine based on this target.

Galapagos and GSK inked the original deal in June 2006. The current expansion marks the third time GSK has broadened the scope of their agreement. Galapagos has received a total of €41 million (roughly $59.62 million) from GSK in the form of an equity investment, an up-front payment, and preclinical milestones.

The companies have a separate partnership focused on developing anti-infectives. It began in December 2007 with €3.5 million (approximately $5.17 million) up front. After an expansion in January, Galapagos achieved its first success and obtained €500,000 (roughly $737,488 million) in October. Further milestones could reach €95 million (about $140.12 million) for each drug candidate. If a product is commercialized, Galapagos may receive up to €120 million (roughly $177 million) for achievement of specific sales milestones. Galapagos is also eligible to receive up to double-digit royalties on worldwide sales of alliance products.

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