- Transaction would enable Galapagos to realize considerable annualized savings and accelerate its pipeline focused on developing transformational medicines
- Aims to preserve the Jyseleca® (filgotinib) business and a significant number of positions
- Galapagos plans to streamline its remaining operations and further build efficiencies
Mechelen, Belgium; 30 October 2023, 21:01 CET; regulated information – inside information – Galapagos NV ((Euronext &, NASDAQ:GLPG) and Alfasigma S.p.A. today announced that they have signed a letter of intent contemplating a transfer of the Jyseleca® business to Alfasigma, including the European and UK Marketing Authorizations, the commercial, medical and development activities for Jyseleca® and approximately 400 positions in 14 European countries.
In the contemplated transaction, Galapagos will receive a €50 million upfront, potential milestone payments totaling €120 million and mid-single to mid-double-digit royalties on European sales. Galapagos will pay up to €40 million by June 2025 to Alfasigma for Jyseleca® related development activities. In addition, Galapagos plans to streamline its remaining operations and further build efficiencies, with an envisaged reduction of approximately 100 positions across the organization. Galapagos estimates annualized savings ranging between €150 million and €200 million.
This repositioning of the company marks yet another significant milestone in Galapagos' ongoing transformation into an innovative biotechnology company with a patient-centric research and development pipeline focused on immunology and oncology. While Galapagos' commitment to transforming patient outcomes with life changing science and innovation remains unchanged, its ability to work efficiently across streamlined operations and portfolio are expected to accelerate these efforts.
"Today's news is the result of a thoughtful, in-depth analysis, and represents the successful conclusion of the strategic evaluation process for Jyseleca®. We are confident this is the best possible outcome for our employees, patients and their prescribers, our other stakeholders and Jyseleca®. I want to recognize the tremendous efforts and valuable contributions of our talented workforce, and in particular the Jyseleca® team, who we believe can thrive within Alfasigma," said Dr. Paul Stoffels1, CEO and Chairman of Galapagos. "Looking ahead, the planned transaction is expected to free-up significant resources across the organization, enabling us to invest more in our R&D growth areas, business development and M&A. This will support and accelerate our transformation into a global innovative biotech company with a pipeline of best-in-class medicines to address high unmet needs."
Mr. Francesco Balestrieri, Chief Executive Officer of Alfasigma, added, "We are very pleased to have signed a letter of intent with Galapagos and we are excited to acquire Galapagos' Jyseleca® business. The acquisition of Galapagos' Jyseleca® business represents another important milestone in Alfasigma's international transformation and growth path and fits perfectly with our Company's core business areas.
We believe this will benefit both companies and ensure that Jyseleca® will continue to be available to patients who can benefit from it. Galapagos has a skilled workforce dedicated to improving the lives of many patients, and we look forward to welcoming them following completion of the process."
Thad Huston, CFO and COO of Galapagos, said, "While decisions that affect our colleagues are never easy, these changes are necessary to build a stronger future for our company. It is essential that we drive operational efficiencies in our remaining operations and intend to implement a focused, rightsized organization that is approximately half the size of our current organization. We will focus our efforts on internal research and development and disciplined business development as we work to expand our innovative pipeline and generate value for our shareholders."
Process and timing
The completion of the intended transaction is subject to the execution of a definitive agreement and customary conditions, including regulatory approvals and consultations with works councils. There can be no assurance regarding the completion of the transaction. The letter of intent includes a customary break-up fee in the event either party does not proceed to a definitive agreement on terms consistent with the letter of intent. Galapagos will organize its Q3 2023 earnings call on ...