J
ohnson & Johnson, the maker of the arthritis medicine Remicade, may pay Belgian biotechnology company Galapagos NV as much as $ 1 billion to develop treatments for rheumatoid arthritis. Galapagos shares had a record jump.Galapagos will get 17 million euros ($ 24.2 million) in initial payments this year and may receive as much as 73 million euros for each treatment licensed by J & J's Janssen Pharmaceutica NV unit, the Mechelen, Belgium-based company said in a statement today.
Galapagos will also be eligible for sales milestone payments of as much as 346 million euros and for royalties on products that make it to the market.
Drugmakers such as J & J are increasingly relying on partnerships to develop new drugs as they work to cut research expenses and reduce the financial risks associated with experimental medicines.
Galapagos already works with GlaxoSmithKline Plc on an osteoarthritis drug and plans to enter an additional partnership for osteoporosis.
" We hope to have three drug candidates for rheumatoid arthritis in clinical trials by 2009,''Chief Executive Officer Galapagos Onno van de Stolpe said in a conference call with reporters today. The company's most-advanced arthritis product will enter clinical trials next year.
Galapagos jumped as much as 1.76 euros, or 26 percent, to 8.56 euros and traded at 8.48 euros as of 9:09 am in Brussels trading.
The company raised its 2007 revenue forecast by 6 million euros to 60 million euros to 64 million euros because of the payments from the collaboration with J & J and now expects to have net cash of more than 48 million euros at the end of the year.
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