Galapagos Concludes Strategic Evaluation And Signs Letter Of Intent To Transfer Jyseleca Business To Alfasigma; Co Will Receive A €50M Upfront, Potential Milestone Payments Totaling €120M And Mid-single To Mid-double-digit Royalties On European Sales
Portfolio Pulse from Benzinga Newsdesk
Galapagos NV (NASDAQ:GLPG) has signed a letter of intent to transfer its Jyseleca business to Alfasigma. The deal includes a €50 million upfront payment, potential milestone payments totaling €120 million, and mid-single to mid-double-digit royalties on European sales. Galapagos will pay up to €40 million by June 2025 to Alfasigma for Jyseleca related development activities. The company also plans to streamline its operations and expects annualized savings between €150 million and €200 million.
October 30, 2023 | 8:38 pm
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Galapagos NV is transferring its Jyseleca business to Alfasigma, which includes a significant upfront payment, potential milestone payments, and royalties. This move is expected to streamline operations and result in substantial annualized savings.
The transfer of the Jyseleca business to Alfasigma is a significant move for Galapagos NV. The upfront payment, potential milestone payments, and royalties will provide a financial boost. Additionally, the streamlining of operations and expected annualized savings will likely improve the company's financial health, potentially leading to a positive impact on the stock price in the short term.
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