Galapagos exercises co-promotion option for filgotinib with collaboration partner Gilead Sciences in eight European countries

Equity lock-up and standstill arrangement between the companies to expire on 31 December 2017

Mechelen, Belgium; 14 December 2017; 22.01 CET - Galapagos NV (Euronext & NASDAQ: GLPG) announced today the decision to opt-in on the co-promotion of filgotinib with collaboration partner Gilead Sciences in eight European countries, should filgotinib be approved for commercial sale.

Galapagos assumes 35% of the co-promotion efforts in Germany, France, Italy, Spain, the United Kingdom, the Netherlands, Belgium, and Luxembourg. The parties will share equally in the net profit and net losses in these territories. In the markets in Belgium, the Netherlands, and Luxembourg, Galapagos will book the sales. Outside the co-promotion territories, Galapagos will be eligible to receive tiered royalty percentages ranging from 20-30%  on global net sales of filgotinib.

"With this decision, Galapagos takes the next step in its development and moves towards the commercial phase. We and Gilead are preparing the potential launch of filgotinib, during which time Galapagos plans to build a commercial infrastructure to co-promote with Gilead. It is gratifying that, after all the early years of innovation, Galapagos is now preparing to commercialize the first asset arising from our discovery efforts," said CEO and founder of Galapagos, Onno van de Stolpe.

Filgotinib is an investigational therapy, and its safety and efficacy have not been established. Filgotinib is currently being evaluated in Phase 3 studies in rheumatoid arthritis, Crohn's disease, and ulcerative colitis, and in Phase 2 studies in small bowel Crohn's disease, fistulizing Crohn's disease, Sjögrens, ankylosing spondylitis, psoriatic arthritis, cutaneous lupus erythematosus, uveitis, and lupus membranous nephropathy.

Update on lock-up and standstill arrangement with Gilead
At the closing of the collaboration agreement transaction in January 2016, Gilead made a $425 million (or €392 million) equity investment in Galapagos, as a result of which Gilead acquired 6,760,701 ordinary shares of Galapagos, representing 13.27% of the currently outstanding share capital of Galapagos. Further to this collaboration agreement, the parties agreed to a lock-up and standstill arrangement. The lock-up and standstill arrangement will expire on 31 December 2017.