Galapagos and AbbVie expand cystic fibrosis collaboration

Belgium-based biotech Galapagos (Euronext: GLPG) and US pharma major AbbVie (NYSE: ABBV) have expanded their agreement in cystic fibrosis (CF) to reflect the successful expansion of their CF portfolio.

The companies have agreed to increase the potential milestones to Galapagos for Phase I and II achievements, bringing the remaining total milestones in the CF alliance up to around $600 million, from $350 million. As a result of the announcement late on Friday, Galapagos’ shares gained 8.8% to 43.20 euros in trading on Monday (May 2).

Other key collaboration terms remain in place: tiered royalty payments on net sales, ranging from mid-teens to twenty percent. Galapagos retains commercial rights to China and South Korea, and has an option to co-promote in Belgium, Netherlands, and Luxembourg.