Osteoarthritis (OA) is a degenerative disease characterized
by joint destruction and loss of cartilage, typically
affecting people aged 45 and older. In OA, the surface
layer of cartilage breaks down and wears away, causing
bones beneath the cartilage to rub together, which
can cause pain, swelling, and loss of motion of
the joint. These symptoms are often treated with
non-steroidal anti-inflammatory drugs (NSAIDs),
but there are no treatments available currently
to reverse or block the disease process. It is expected
that with the aging of the population, more individuals
will be prone to develop OA. As mobility of seniors
is of high importance to maintaining a high quality
of life, preventing the severity of OA is seen as
an immense clinical need over the next decade.
Galapagos and Servier initiated their strategic
alliance to develop new OA therapies
in July 2010. The alliance builds on novel OA drug
targets discovered by Galapagos through its proprietary
platform. Galapagos is responsible for the discovery
and development of new small molecule candidate
drugs against these targets, some of which are in
the advanced stages of drug discovery. Servier will
have an exclusive option to license each small molecule
program after the completion of Phase I clinical
trials by Galapagos. Upon exercise of each option,
Servier will be responsible for the further clinical
development, registration and commercialization.
For any marketed products, Galapagos retains exclusive
U.S. commercialization rights. Under the terms of
the agreement, Galapagos will receive research access
payments of €7 million from Servier. Galapagos
is also eligible to receive discovery, development,
regulatory and other milestone payments that could
reach €290 million, plus royalties upon commercialization
of products outside the U.S. covered under the agreement.