Galapagos, Merck Expand Metabolic Alliance

Galapagos NV has expanded its global strategic alliance in metabolic diseases with an affiliate of Merck to incorporate the development of new therapies for atherosclerosis. Galapagos will be responsible for the discovery and preclinical development of new small molecule candidate drugs based on novel Galapagos targets.

The alliance will make use of Galapagos’ proprietary target discovery platform for identification of novel targets in atherosclerosis, as well as in obesity and diabetes. After validation, targets will be selected by a joint steering committee and entered into screening and chemistry by Galapagos. Merck will have an exclusive option to license in each candidate for clinical development and commercialization on a worldwide basis. Upon exercise of such option, Merck will be responsible for the development and commercialization of the candidate drug. Galapagos may execute Phase I clinical studies and will have the right to further develop and commercialize certain compounds for which Merck does not exercise its exclusive option.

In January 2009, Galapagos formed an alliance with Merck in diabetes and obesity. Under the terms of this expanded agreement, Galapagos is eligible to receive research, regulatory and sales milestone payments that may total in excess of $645 million. Galapagos is also eligible to receive royalties upon commercialization of any products covered under the agreement.

This expansion is separate from Galapagos’ alliance with Merck in inflammatory diseases, which was formed in April 2009.