Belgian biotechnology company Galapagos NV (Euronext Brussels:GLPG) (NASDAQ:GLPG) and Italian pharmaceutical company Alfasigma S.p.A. announced on Tuesday an agreement to transfer Galapagos' Jyseleca (filgotinib) business to Alfasigma.

This move is in line with Galapagos' transition into an innovative biotechnology company with a focus on research and development addressing high unmet needs in immunology and oncology.

Filgotinib is marketed as Jyseleca in Europe and Japan for the treatment of adults with moderate to severe active rheumatoid arthritis (RA) who have responded inadequately or are intolerant to one or more disease modifying anti-rheumatic drugs. Filgotinib is also marketed as Jyseleca in Europe and Japan for the treatment of adult patients with moderate to severe active ulcerative colitis (UC) who have had an inadequate response with, lost response to, or were intolerant to either conventional therapy or a biologic agent.

Alfasigma will acquire the entire Jyseleca business, including marketing authorisations for Europe and the UK, commercial activities, and approximately 400 positions across 14 European countries. Galapagos will receive a EUR50m upfront payment, potential sales-based milestone payments of EUR120m, and mid-single to mid-double-digit royalties on European sales. Additionally, Galapagos will contribute up to EUR40m to Alfasigma for Jyseleca-related development activities by June 2025.

The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions.

As part of the deal, Michele Manto, Galapagos' chief commercial officer, will join Alfasigma and has resigned from his position at Galapagos. Galapagos foresees significant savings ranging between EUR150m and EUR200m, and said it will prioritise investments in its existing technology platforms of small molecules, CAR-T cell therapies and biologics, as well as the scale-up of its decentralised CAR-T manufacturing network. The company also plans to invest in licensing and acquisition opportunities in its strategic therapeutic areas.