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.