Galapagos Drops Early Metabolic & Osteoarthritis Programs, Reorganizes R&D Efforts - Galapagos (OTC:GLPGF), Galapagos (NASDAQ:GLPG)

Galapagos NV GLPG is chopping its pipeline to conserve cash while its business development team pursues a mission to find a “transformative” deal for the company.
The company is ditching its Idiopathic pulmonary fibrosis (IPF) molecule ’1205 while moving ahead with a Phase 2 IPF study for its chitinase inhibitor ’4617.
It is also dropping early research efforts in metabolic diseases and osteoarthritis while cutting back on non-core areas of R&D focus. This decision will cost the pipeline their diabetes drug GLPG4059.
Bart Filius, President, and COO said, “in line with our review, we decided to discontinue or cancel certain studies and consequently identified opportunities to reduce operational costs, for a total potential savings of €150 million on a full-year basis. Roughly half of these savings will be realized in 2021, resulting in a 2021 cash burn guidance of between €580 million and €620 million. We are working towards a right-sized, refocused version of Galapagos, setting us on a path towards success with our first commercial product, new R&D opportunities, substantial clinical news flow, and a lengthened cash runway for validation of our early pipeline assets.”
Still in the spotlight: Lead Toledo program ‘3970, a SIK2/3 inhibitor, moving ahead in 5 proof-of-concept studies with plans “to roll out our further development plans in the second half of the year.”
Researchers selected an additional molecule from their Toledo program, SIK2/3 inhibitor ‘4876, “as a candidate to accelerate from preclinical phase into clinical development.”
They expect to progress their TYK2 inhibitor ‘3667 into Phase 2b.
Price Action: GLPG shares are down 1.26% at $75.20 during the market trading session on the last check Friday.

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