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Galapagos and Merck & Co., Inc. agree to end strategic alliances

• Alliances signed in 2008 and 2009, covering metabolic, cardiovascular and inflammatory disease

• Strategic change in Merck's early discovery programs resulted in conclusion of the alliances

• Galapagos regains full rights to all programs from Merck

• Merck pays Galapagos ?? M for results delivered in 2010

Click here to access the live audio webcast presentation at 11.00 CET (10.00 GMT), call number +32 2290 1791

Mechelen, Belgium; 4 February 2011 - Galapagos NV (Euronext: GLPG) announced today that it has regained worldwide rights for all assets developed in its strategic alliances with Merck & Co, Inc. (known as MSD outside the United States and Canada) through an affiliate, and that the alliances will end. Merck will make a payment of €12 million to Galapagos for work completed in 2010.

Including the payment of €12 million, Galapagos will have received a total of €20.9 million in upfront and milestone payments derived from the alliances. Galapagos has regained worldwide rights to the targets discovered and assays developed from the collaboration.


"In the alliances with Merck, we have discovered promising targets and developed target discovery assays for diseases with considerable unmet medical needs. Galapagos now owns these valuable assets which can form the basis for future alliances," said Onno van de Stolpe, CEO of Galapagos. "The work delivered to Merck last year also made a strong contribution to Galapagos' financial results in 2010."

"Changes in our early discovery strategy have required us to make some challenging decisions," said Kathleen Metters, Senior Vice President, External Discovery and Preclinical Sciences, at Merck. "We look forward to investigating alternate opportunities to collaborate with Galapagos in the future."

About Galapagos' assays and validated targets in metabolic, cardiovascular and inflammatory diseases

Galapagos applied its expertise in working with disease-relevant human primary cells to develop high throughput assays capable of identifying promising protein targets and small molecules that modify the disease process. For diabetes and obesity, these include glucose and glycogen metabolism and an insulin secretion assay in human primary cells. For atherosclerosis Galapagos identified and characterized targets that suppress LDL (bad cholesterol) and enhance HDL (good cholesterol) levels. In addition Galapagos screened a certain type of lung cell to identify and validate targets that suppress a factor believed to be important in inflammatory disease.


About Galapagos

Galapagos (Euronext: GLPG; OTC: GLPYY) is a mid-size biotechnology company specialized in the discovery and development of small molecule and antibody therapies with novel modes-of-action. The Company is progressing one of the largest pipelines in biotech, with seven clinical and over 50 discovery programs. Through risk/reward-sharing alliances with GlaxoSmithKline, Lilly, Janssen Pharmaceutica, Roche and Servier, Galapagos is eligible to receive up to €2.5 billion in downstream milestones, plus royalties. The Galapagos Group has over 800 employees and operates facilities in seven countries, with global headquarters in Mechelen, Belgium. More info at:





Galapagos NV

Onno van de Stolpe, CEO

Tel: +31 6 2909 8028


Elizabeth Goodwin, Director Investor Relations

Tel: +31 6 2291 6240


Posted: February 2011