Galapagos(GLPG)2023-03-31 10:05Strategic Collaboration - Galapagos NV and NovAliX announced a strategic collaboration involving the transfer of Galapagos' drug discovery and research activities in Romainville, France[2]. - The collaboration is part of Galapagos' strategic reorientation towards a fit-for-purpose R&D organization, focusing on oncology and immunology[2]. - The collaboration aims to accelerate innovation, reduce risks, and shorten drug development timelines[2]. - The strategic partnership reflects the evolving landscape of the biopharmaceutical industry, emphasizing new collaboration models between CROs and biopharmaceutical companies[4]. Financial Impact - The financial impact of the transaction is included in Galapagos' previously announced 2023 cash burn guidance, estimated to be between €380 million and €420 million[3]. - The transaction is expected to close in July 2023, subject to customary closing conditions[3]. Drug Discovery Enhancement - The acquisition will allow NovAliX to enhance its drug discovery capabilities, particularly in kidney diseases, fibrosis, and immunology, complementing its existing expertise in oncology and infectious diseases[4]. - NovAliX's acquisition includes a highly skilled team from Galapagos, enhancing its DNA-Encoded Libraries database and cryo-EM driven discovery engine[4]. - Galapagos retains the flexibility to access NovAliX's research capabilities through a five-year collaboration agreement[6]. Commitment to Medical Needs - Galapagos' first medicine for rheumatoid arthritis and ulcerative colitis is already available in Europe and Japan, indicating its commitment to addressing high unmet medical needs[5].