Summary of significant transactions
Transfer of the Jyseleca® business to Alfasigma
On 31 January 2024, we successfully completed the transaction with Alfasigma for the transfer of the Jyseleca® business. Alfasigma paid us an upfront payment of €50.0 million plus €9.8 million for cash and working capital. We are entitled to potential future sales-based milestone payments totaling €120.0 million and mid-single to mid-double-digit royalties on European sales. The estimated fair value of this contingent consideration amounted to €47.0 million on closing of the transaction.
We already contributed €10.0 million to Alfasigma and will still contribute €30.0 million by June 2025 for Jyseleca® related development activities.
As part of the transaction, the amended Filgotinib Agreement between us and Gilead has been assigned by us to Alfasigma and led to the full recognition in revenue of the remaining deferred income related to filgotinib.
Clinical collaboration agreement with Adaptimmune
On 30 May 2024, we entered into a clinical collaboration agreement with an option to exclusively license Adaptimmune’s next-generation TCR T-cell therapy (uza-cel) targeting MAGE-A4 for head & neck cancer and potential future solid tumor indications, using Galapagos’ decentralized cell manufacturing platform. Under the terms of the Collaboration and Exclusive License Agreement, we paid an upfront exclusivity payment of $70.0 million and $15.0 million in R&D funding to Adaptimmune at signing of the collaboration agreement on 30 May 2024. A further $15.0 million in R&D funding will follow subject to the start of dosing in the proof-of-concept trial. Adaptimmune will be responsible for the clinical proof-of-concept trial in head & neck cancer and the supply of the vector for the manufacturing of uza-cel. We will be responsible for the delivery of fresh uza-cel product for the head & neck cancer proof-of-concept trial using our innovative, decentralized cell therapy manufacturing platform.
We capitalized the $70.0 million as intangible asset and amortize it over the expected exclusivity period. The $15.0 million has been recognized as deferred expense and will gradually be released in R&D expenses over the R&D period.
Equity investment in Frontier Medicines
On 31 January 2024, we participated for $40.0 million in the Series C financing round of Frontier Medicines, a pioneer in oncology with a unique FrontierTM platform based on chemoproteomics, covalent chemistry and machine learning to unlock access to formerly "undruggable" cancer targets and a pipeline of potential best-in-class assets that fit with our precision oncology R&D approach. This equity instrument is presented on the line “Equity investments” in our statement of financial position and is measured at fair value through other comprehensive income. Per 30 June 2024 no fair value change was recognized except for the currency exchange rate impact.