Servier and Galapagos in 260 million-euro oncology deal

Leading independent French drugmaker Laboratoires Servier and Belgium’s Galapagos (Euronext: GLPG) have further expanded their collaboration, this time entering into a multi-year strategic alliance to develop new cancer therapies.

Under the terms of the agreement, Galapagos will receive research access payments of 2 million euros ($2.7 million) from Servier. Galapagos is also eligible to receive discovery, development, regulatory and other milestone payments that could reach 260 million euros, plus royalties on commercialization of products by Servier.

The alliance builds on a combination of novel Galapagos and Servier targets in oncology. Galapagos will be responsible for the discovery and development of new candidate drugs against these targets. Servier will have an exclusive option to license each small molecule program after the completion of pre-clinical development by Galapagos. Upon exercise of each option, Servier will be responsible for further clinical development, registration and commercialization. Galapagos retains exclusive rights for clinical development, registration and commercialization in the USA.