Gilead Sciences, Inc. (NASDAQ:GILD) might as well have quashed rumors making waves claiming it is planning to acquire Belgium-based Galapagos. The drug maker is paying a $50 million milestone payment for the development Crohn’s drug filgotinib, and that appears to be its main play for the moment.
Filgotinib Phase 3 Trial
Filgotinib is a JAK1-selective inhibitor designed as a novel treatment for rheumatoid arthritis, ulcerative colitis, and Crohn’s disease. The drug is currently undergoing a Phase 3 trial as the two companies try to evaluate its efficacy and safety when used a once a day drug in doses of 100mg and 200mg versus a placebo administered in 1300 patients.
If everything goes as planned, Gilead expects to complete the Phase 3 trial in late 2019 as it looks to get a head start with the drug ahead of AbbVie Inc (NYSE:ABBV) Crohn’s disease drug ABT-494. The drug maker is hoping for positive results on the current trials having reported disappointing clinical trials results on its ulcerative drug, GS-5745.
AbbVie Vs Gilead
Gaining approval ahead of its fierce rival is a key objective for Gilead, given that the same will go a long way in giving it an edge on the treatment of Crohn’s disease. However, AbbVie stands a better chance of gaining approval for ABT-494 for rheumatoid arthritis treatment having begun clinical trials in January.
Prior to Galapagos working with Gilead, it had signed a $1.4 billion deal to develop and commercialize the drug with AbbVie in 2012. The deal was later terminated in 2015 after AbbVie started working on its own JAK1 inhibitor.
Gilead cannot make a takeover offer for Galapagos until the end of 2017 on an agreement that was signed when it made a $425 million equity investment in the latter. The drug maker currently owns a 14.75% stake in Galapagos. The investment comes at a time when the company is under immense pressure to pursue new revenue sources as a decline in sales of its lead drugs Sovaldi and Harvoni continues to evoke concerns.
Gilead stock was down by 1.19% in Monday trading session closing the day at lows of $74.54 a share.
