Galapagos Secures a $1.675 Billion Deal with Gilead Sciences

Framework Agreement Details

Galapagos and Gilead have entered into a framework agreement that will take effect upon the completion of Gilead's acquisition of Ouro Medicines. According to Gilead's announcement on March 23, 2026, this acquisition will be made for an initial cash consideration of $1.675 billion, subject to customary adjustments, and up to $500 million in contingent milestone payments. Gamgertamig (OM336) is a clinical-phase BCMAxCD3 bispecific T-cell engager designed for rapid and profound depletion of plasma cells and B cells via a subcutaneous route. The compound has received Fast Track and Orphan Drug designations from the U.S. FDA for the treatment of autoimmune hemolytic anemia (AIHA) and immune thrombocytopenia (ITP), with expected entry into registration studies by 2027.

Financial Terms and Responsibilities

Galapagos's share in the total consideration of the acquisition amounts to 50% of the initial $1.675 billion and 50% of any contingent milestone payments. Galapagos is required to fund its share of payments due to KeyMed Biosciences Chengdu Co., Ltd under the main license agreement between KeyMed and Ouro, including 25% of milestone payments and 50% of royalties related to gamgertamig products. The company will bear all costs of development prior to the registration studies according to agreed research plans and budgets, while clinical development costs enabling registration will be equally shared between the parties. Galapagos is eligible for up to $100 million in milestone payments upon Gilead's initiation of the first registration trials for gamgertamig in certain other indications. Gilead will assume responsibility for commercialization, including all associated costs, globally outside of KeyMed's territories, and will pay Galapagos tiered royalties between 20% and 23% on the net sales of gamgertamig upon commercialization.

Additional Collaborative and Independent Ventures

Galapagos will accumulate a portfolio of three additional preclinical programs focused on autoimmunity, originating from Ouro, on which Gilead had the option to participate in a 50/50 profit share after clinical proof of concept for $75 million per program. A waiver related to the previous collaboration agreement (OLCA Waiver) allows the company to spend $500 million in cash to acquire or develop research programs independently of Gilead and not subject to Gilead's rights under the OLCA. The company may also elect to use up to $150 million of these $500 million for potential share buybacks, dividend payments, and other capital stock distributions of the company, under certain restrictions.