Big deal over JAK

In late February, biotech Galapagos entered a pact with Abbott Laboratories worth $1.35 billion over rights to the experimental rheumatoid arthritis drug GLPG0634. The Abbott Park, Illinois–based pharma agreed to pay $150 million upfront for Galapagos' small-molecule Janus kinase 1 (JAK1) inhibitor, currently in phase 2. The Mechelen, Belgium–based biotech may cash in a further $200 million if phase 2 endpoints are met, and another $1 billion in milestone payments and double-digit royalties. Oral JAK inhibitors are a new class of oral drugs expected to rival biologics such as Abbott's rheumatoid arthritis drug Humira (adalimumab) that last year earned the company $7.9 billion. The advantage of JAK inhibitors is that they target a signaling pathway downstream of multiple cytokines, rather than blocking one at a time (Nat. Biotechnol. 29, 467–468, 2011). Galapagos' early phase 2 data attracted several suitors, who “were all very eager because they have a lot to lose,” says Jan De Kerpel, an analyst at KBC Securities, Brussels. The size of the deal reflects Galapagos' business prowess. “They knew that several pharma companies...were aiming to protect their RA [rheumatoid arthritis] franchise,” he says. Galapagos also “cleverly secured an entry ticket into phase 3,” De Kerpel adds, as Abbott assumes sole responsibility for final phase 3 studies and manufacturing. Pfizer's JAK inhibitor tofacitinib in phase 3 is the front-runner for this new wave of oral rheumatoid arthritis drugs.