Galapagos signs agreement to transfer Jyseleca® business to Alfasigma
Galapagos NV (Euronext & NASDAQ: GLPG) and Alfasigma S.p.A. today announced that they have signed an agreement to transfer Galapagos’ Jyseleca® (filgotinib) business to Alfasigma, marking a significant milestone in Galapagos’ transformation into an innovative biotechnology company with a best-in-class research and development pipeline aimed at addressing high unmet patient needs in immunology and oncology. The agreement follows the signing of a letter of intent as announced on 30 October 2023.
Subject to, and as part of the closing of the transaction, Michele Manto, Galapagos’ Chief Commercial Officer, will join Alfasigma, and has resigned from his position as Chief Commercial Officer and Executive Committee member at Galapagos at the end of December 2023.
“Michele has been instrumental in the execution of our commercial strategy and has been a key contributor to the development and success of Jyseleca®, making a difference to over 20,000 patients across Europe,” said Dr. Paul Stoffels (1), CEO and Chairman of Galapagos. “We would like to thank Michele for his contributions to Galapagos and are confident that his planned transition to Alfasigma will ensure business continuity through his close collaboration with the Jyseleca® team. We are very pleased that the agreement with Alfasigma will enable the continued availability of Jyseleca® to patients, while supporting a promising future for the Jyseleca® business and its dedicated employees.”
In connection with the transaction, Galapagos expects to realize substantial savings ranging between €150 million and €200 million and will prioritize investments in its existing technology platforms of small molecules, CAR-T cell therapies and biologics, as well as the scale-up of its innovative decentralized CAR-T manufacturing network. In addition, Galapagos plans to invest in licensing and acquisition opportunities ranging from late preclinical to mid-stage clinical assets in its strategic therapeutic areas to drive value across its pipeline.
As previously announced, under the terms of the agreement, Alfasigma will acquire the entire Jyseleca® business, including the European and UK Marketing Authorizations, the commercial, medical affairs and development activities for Jyseleca® and approximately 400 Galapagos positions in 14 European countries. Galapagos will receive a €50 million upfront payment, potential sales-based milestone payments totaling €120 million and mid-single to mid-double-digit royalties on European sales. Galapagos will contribute up to €40 million to Alfasigma by June 2025 for Jyseleca® related development activities.
(1) Throughout this press release, ‘Dr. Paul Stoffels’ should be read as ‘Dr. Paul Stoffels, acting via Stoffels IMC BV’