Galapagos in deal with Johnson & Johnson unit for oncology target in 33.5 million-euro deal; US FDA delays J&J's tapentadol ER

Belgian company Galapagos NV (Euronext: GLPG) said yesterday that its affiliate, Argenta Discovery, has entered into a drug discovery service agreement with Janssen Pharmaceutica, a subsidiary of US health care giant Johnson & Johnson (NYSE: JNJ), aimed at delivering novel cancer drug candidates. The news was welcomed by investors, as Galapagos’ shares rose 3.7% to an all-time high of 12.18 euros in morning trading following the announcement.

Argenta, a UK firm acquired by Galapagos in February this year for around $22 million, will provide medicinal chemistry and biology for a number of Janssen oncology targets. The total contract value for Galapagos for the initial phase of the collaboration could exceed 33.5 million euros ($46 million) over a five-year period pending the achievement of certain milestones.

This fully integrated drug discovery service agreement calls for Argenta to perform hit-to-lead and lead optimization for a number of Janssen oncology targets, and also activities up to preclinical candidate selection. Janssen retains the option to extend the services beyond the initial set of targets, up to a total of 15 targets.