Galapagos enters alliance in diabetes and obesity with Merck

Belgian biotechnology company Galapagos has entered into an alliance with Merck & Co to develop potential new therapies in obesity and diabetes.

The alliance will make use of Galapagos" proprietary SilenceSelect target discovery platform to identify targets in obesity and diabetes. After validation, targets will be selected by a joint steering committee and entered into screening and chemistry by Galapagos.

Merck has the option to acquire an exclusive licence to each candidate drug and upon exercise of such an option, will be responsible for the development and commercialisation of the candidate drug. Galapagos may carry out Phase I clinical studies and will have the right to further develop and commercialise certain compounds for which Merck does not exercise its exclusive option.

Under the terms of the agreement, Galapagos will receive an upfront fee of Euro 1.5m from Merck. In addition Galapagos is eligible to receive milestone payments that could potentially exceed €170m.

"The alliance with Merck in obesity and diabetes further demonstrates Galapagos" ability to expand into new therapeutic areas," said Onno van de Stolpe, chief executive of Galapagos. "This early stage alliance with Merck fits nicely into our alliance infrastructure as other programs advance into later stages."