- Galapagos NV (NASDAQ: GLPG) is chopping its pipeline to conserve cash while its business development team pursues a mission to find a “transformative” deal for the company.
- The company is ditching its Idiopathic pulmonary fibrosis (IPF) molecule ’1205 while moving ahead with a Phase 2 IPF study for its chitinase inhibitor ’4617.
- It is also dropping early research efforts in metabolic diseases and osteoarthritis while cutting back on non-core areas of R&D focus. This decision will cost the pipeline their diabetes drug GLPG4059.
- Bart Filius, President, and COO said, “in line with our review, we decided to discontinue or cancel certain studies and consequently identified opportunities to reduce operational costs, for a total potential savings of €150 million on a full-year basis. Roughly half of these savings will be realized in 2021, resulting in a 2021 cash burn guidance of between €580 million and €620 million. We are working towards a right-sized, refocused version of Galapagos, setting us on a path towards success with our first commercial product, new R&D opportunities, substantial clinical news flow, and a lengthened cash runway for validation of our early pipeline assets.”
- Still in the spotlight: Lead Toledo program ‘3970, a SIK2/3 inhibitor, moving ahead in 5 proof-of-concept studies with plans “to roll out our further development plans in the second half of the year.”
- Researchers selected an additional molecule from their Toledo program, SIK2/3 inhibitor ‘4876, “as a candidate to accelerate from preclinical phase into clinical development.”
- They expect to progress their TYK2 inhibitor ‘3667 into Phase 2b.
- Price Action: GLPG shares are down 1.26% at $75.20 during the market trading session on the last check Friday.
Galapagos Drops Early Metabolic & Osteoarthritis Programs, Reorganizes R&D Efforts