Listen to the audio version of the article
Less than three weeks after Intercept Pharmaceuticals shares were listed on the Nasdaq, Alfasigma signs a letter of intent to acquire another international biotechnology business. Ending up in the sights of the Bolognese pharmaceutical group controlled by the Golinelli family (1.2 billion euros in turnover and 3 thousand employees) is the Jyseleca division of the Galapagos company, the commercial name in Europe and Japan of the filgotinib-based drug against arthritis rheumatoid and ulcerative colitis of the Belgian pharmaceutical research company from Mechelen, listed on Euronext and Nasdaq (around half a billion euros in turnover and the same amount of R&D spending in 2022), which develops innovative drugs in the oncology and immunological fields.
Under the agreement, Galapagos will sell the Jyseleca (filgotinib) business to Alfasigma, including marketing authorizations in Europe and the United Kingdom and research and development activities, as well as approximately 400 employees in 14 European countries. Alfasigma will pay an advance of 50 million euros to Galapagos, on a total operation of 120 million euros and single- to double-digit royalties on European sales. In turn, Galapagos will pay Alfasigma up to 40 million euros by June 2025 for further development activities related to Jyseleca, an oral inhibitor with two approved indications (rheumatoid arthritis, after launch in 2020, and ulcerative colitis from 2021), which in the first half of 2023 it recorded net sales in Europe of 54 million euros. The timing of the completion of the transaction will have to wait for the definitive agreement, subject to regulatory approvals and consultations with the works councils.
The operation announced yesterday evening will allow Alfasigma to add an innovative and specialized product to its portfolio, which now enters a new Phase 3 program aimed at extending the Jyseleca label to a third therapeutic indication, and to expand its presence significantly in the Northern European markets, where most of the sales of the Galapagos drug are concentrated today, «and will contribute to further strengthening our portfolio in the gastrointestinal field, while allowing us to access the rheumatology market», states Stefano Golinelli, president of Alfasigma.
This is “the best possible outcome for our employees, patients, medical specialists, our stakeholders and for Jyseleca – comments Paul Stoffels, CEO and president of Galapagos -. I want to recognize the enormous efforts and valuable contributions of our talented teams to effectively bring Jyseleca to many patients across Europe. I am sure that they will also be successful as part of Alfasigma.” A win-win operation, concludes Francesco Balestrieri, CEO of Alfasigma, and “another milestone in our path of transformation and international growth”.