Galapagos Signs agreement with Gilead on T-cell Engager in autoimmune diseases

Galapagos announced that, following Gilead entering into a definitive agreement to acquire Ouro Medicines for $1,675m in cash consideration, and up to $500m in contingent milestone payments, Galapagos and Gilead have now entered into a binding agreement to collaborate on advancing gamgertamig (BCMAxCD3 T cell engager) in autoimmune diseases. This agreement comes after the companies announced their advanced discussions on the collaboration last week. Economically, Galapagos is effectively co-financing Gilead's acquisition and early-stage development of gamgertamig in return for royalties on net sales (20-23%). While the economics are skewed, this agreement frees up $500m in the amended OLCA agreement, which provides Galapagos with the flexibility to pursue additional business development opportunities, while retaining royalty rights for gamgertamig without bearing commercialisation costs. € 37 TP and Accumulate maintained.