MECHELEN, BELGIUM--(Marketwire - Nov 12, 2012) - Galapagos NV (EURONEXT BRUSSELS: GLPG)
today that it has received a positive ruling from the Belgian tax
enabling Galapagos to benefit from the Belgian patent income deduction on
related income arising from its global collaboration with Abbott on
As a result of this ruling, 80% of Galapagos' qualifying income
collaboration agreement with Abbott, based on the Galapagos patents
JAK1 inhibitor GLPG0634 currently in Phase 2A clinical trials in RA, is
from Belgian corporate income tax. This will result in an effective
rate of under 5% for Galapagos for this income. This ruling is valid
years and may be renewed thereafter. Galapagos received an $150 million
upfront fee from Abbott for rights related to the global collaboration.
successful completion of the RA Phase II studies, Abbott will
program for a one-time fee of $200 million if the studies
meet certain pre-agreed criteria. Abbott will assume sole responsibility
for Phase III clinical
development and global manufacturing. Pending achievement of
developmental, regulatory, commercial and sales-based milestones,
would be eligible to receive additional patent-based milestone payments
Abbott, potentially amounting to $1.0 billion, in addition
to tiered double-digit royalties on net sales upon commercialization.
"The tax ruling announced today is very important for Galapagos
shareholders," said Guillaume Jetten, Chief Financial Officer of Galapagos.
this way, Galapagos may have more funds available to invest in its R&D
coming up behind GLPG0634, thereby increasing our chances of developing
intellectual property in those programs as well. This is a clear benefit
Mechelen headquarters and the supportive nature of the Belgian
Galapagos (EURONEXT BRUSSELS: GLPG) (PINKSHEETS: GLPYY) is a mid-size
biotechnology company specialized in the discovery and development of
molecule and antibody therapies with novel modes-of-action. The
progressing its JAK1 inhibitor GLPG0634, as well as one of the largest
in biotech, with four programs in development and over 30 discovery
The Galapagos Group has over 800 employees and operates facilities
countries, with global headquarters in Mechelen, Belgium. More
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Such forward-looking statements may involve known and unknown
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Source: Galapagos NV via Thomson Reuters ONE