Galapagos up on deal with Abbott for JAK-1 inhibitor
Galapagos N.V. (Euronext:GLPG; Pink:GLPYY) jumped EUR 2.25 (21%) to EUR 13.09 on Wednesday after partnering with Abbott Laboratories (NYSE:ABT) to develop and commercialize Galapagos' GLPG0634, a Janus kinase-1 (JAK-1) inhibitor in Phase II testing for rheumatoid arthritis. Galapagos will receive $150 million up front. If the Phase II RA studies meet certain pre-agreed criteria, Abbott will license the program for a one-time fee of $200 million. Galapagos expects to deliver to Abbott a complete Phase II package in 2014. Abbott will be responsible for Phase III development and worldwide manufacturing. Galapagos, which retains co-promotion rights in Belgium, the Netherlands and Luxembourg, is eligible for up to $1 billion in additional milestones, plus tiered, double-digit royalties. ...