Stock Alert: Galapagos Tanks 25%

(RTTNews) - Shares of Galapagos NV (GLPG) slipped over 25% on Wednesday morning after the company announced that its partner Gilead Sciences received a complete response letter from the FDA regarding its investigational treatment for moderately to severely active rheumatoid arthritis, in which the regulator declined to approve the drug in its current form.

GLPG is currently trading at $140.86, down $47.22 or 25.11%, on the Nasdaq.

The FDA has asked for further data before completing its review of the New Drug Application. FDA also expressed concerns about the overall benefit/risk profile of the filgotinib 200 mg dose.

Galapagos is entitled to an approval milestone of $100 million for the approval of filgotinib in the U.S.