Growing up Galapagos

With a new partner for filgotinib, Galapagos N.V. is poised to enter Phase III testing for the first time, after a five-year period of Phase II disappointments and scuttled deals. The new deal with Gilead Sciences Inc. also could help the company complete its transition into a pure product play with a marketed drug.

Even before putting its first compound into the clinic seven years ago, Galapagos billed itself as a discovery services company that also developed in-house programs. As the company's pipeline advanced, synergies with the service divisions diminished, and in spring of 2014, Galapagos sold off two of its three service businesses...