Galapagos And AbbVie Restructure CF Collaboration

(RTTNews) - Galapagos NV (GLPG) and AbbVie, Inc (ABBV) announce a restructuring of their cystic fibrosis or CF alliance. AbbVie takes over all programs in CF and continues the development of a triple combination therapy for CF.

AbbVie will obtain exclusive worldwide rights to the current CF investigational drug candidate portfolio developed by the two companies in the course of the collaboration. The portfolio includes all potentiator and corrector candidates. AbbVie will be responsible for all future activities and will bear all costs associated with this portfolio in CF going forward.

Galapagos will receive an upfront payment of $45 million from AbbVie. Galapagos will be eligible to receive up to $200 million in additional milestone payments from AbbVie pending completion of certain development, regulatory, and commercial achievements in CF by AbbVie.

In the event AbbVie receives regulatory approval and realizes commercial sales in CF, Galapagos is further eligible to receive royalties ranging from single digit to low teens. AbbVie further agrees to pay Galapagos tiered single digit royalties of global commercial sales, if approved, from these candidates achieved in indications outside of CF.

Galapagos retains exclusive global commercial rights to develop GLPG2737, a candidate C2 corrector, in all indications outside of CF. AbbVie is eligible for future milestone payments and tiered single digit royalties on future global commercial sales, if approved, in indications outside CF.