Our partnering strategy is to establish collaborations with major pharmaceutical and biotechnology companies to support development of internal programs through milestone payments and downstream royalties.

Eli Lilly

In December 2007, Galapagos signed a global collaboration agreement with Eli Lilly to discover and develop new medicines for the treatment of osteoporosis. The agreement provides Lilly access to 12 of Galapagos’ proprietary osteoporosis targets and drug discovery programs. Galapagos will be responsible for the development of drug candidates through to Phase IIa clinical Proof of Concept.

GlaxoSmithKline

June 2006, Galapagos signed a broad alliance with GSK to discover and develop breakthrough medicines in osteoarthritis. This multi-target, multi-year alliance runs from target discovery through to delivery of a clinical proof of concept. In June 2007, the scope of the alliance was expanded to include up to two drug discovery programs on selected GSK drug targets.

In December 2007, GSK and Galapagos entered a strategic alliance to develop novel antibacterial and antiviral therapeutics. Galapagos is responsible for the discovery and development of natural product small molecule drug candidates through to clinical Proof of Concept, at which point GSK will have exclusive option to license each compound for further development and commercialization on a worldwide basis. The alliance utilizes the natural product compound collection and chemistry capabilities of BioFocus DPI, Galapagos’ services division.

Janssen Pharmaceutica

In October 2007, Galapagos announced a multi-target alliance with Janssen Pharmaceutica NV, a Johnson & Johnson company, to discover and develop novel small-molecule therapeutics for the treatment of rheumatoid arthritis. Galapagos is responsible for the discovery and development of drug candidates through to clinical Proof of Concept, at which point Janssen will have an exclusive option to license each compound for further development and commercialization on a worldwide basis.

Wyeth

Under an osteoporosis collaboration initiated in 2003, Galapagos has applied its osteoporosis disease expertise to discover and validate novel drug targets for Wyeth. In November 2004, Wyeth selected a set of these targets for internal validation. In June 2007, Wyeth exercised its right to license three proprietary bone anabolic drug targets from the osteoporosis collaboration.