Galapagos NV/S ADR GLPG shares were trading higher Monday after the company announced it has entered into a research and development collaboration with Gilead Sciences, Inc. GILD.
Gilead said it will make a $3.95-billion upfront payment and $1.1-billion equity investment in the Belgian pharmaceutical company, according to a Sunday press release. Galapagos intends to use the proceeds to expand its research and development programs.
Gilead will also receive an exclusive product license and option rights to develop and commercialize all current and future programs in all countries outside Europe.
As part of a 10-year global research and development collaboration; Gilead will have access to a portfolio of compounds, including six molecules in clinical trials, more than 20 preclinical programs and a drug discovery platform.
"We chose to partner with Galapagos because of its pioneering target and drug discovery platform, proven scientific capabilities and outstanding team," Gilead CEO Daniel O'Day said in a statement.
Galapagos shares were trading higher by 16.34% at $169.56 at the time of publication. Gilead shares were trading up by 1.66% at $67.36.
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