Galapagos, Gilead bask in $4-6 bln new drug sales hope

(Adds latest shares, further reaction)

By Ben Hirschler

LONDON, Sept 12 (Reuters) - Strong results for an experimental drug that promises to disrupt the rheumatoid arthritis market lifted shares in Belgian-Dutch firm Galapagos to an all-time high on Wednesday, as analysts forecast multibillion-dollar sales.

The stock was 18 percent higher by 1540 GMT, valuing the biotech company at around $6.2 billion, while shares in Gilead Sciences - its development and marketing partner - rose by more than 3 percent.

The new data from a late-stage clinical trial suggests filgotinib will have a competitive profile among rival medicines in the so-called JAK inhibitor drug class, analysts said.

Existing JAK inhibitors include Pfizer's Xeljanz and Eli Lilly's Olumiant. Abbvie also has an experimental product called upadacitinib that may be approved next year.

Jefferies analyst Peter Welford said filgotinib's efficacy was on a par or above rivals and it also offered a potentially superior safety profile, which should drive uptake despite the medicine likely being fourth to market.

He forecasts worldwide peak annual sales for filgotinib of $6 billion - half from rheumatoid arthritis and the rest for treating other diseases.

Berenberg analysts, who put peak sales at $4 billion, said filgotinib was increasingly looking like a "best-in-class" medicine.

Gilead signed a deal potentially worth more than $2 billion with Galapagos in December 2015, which included a $725 million upfront payment for the development of filgotinib, as well as an equity stake in the European firm.

Under the agreement, Gilead will market the drug and pay a royalty and milestones to Galapagos.

Results from further Phase III clinical trials of filgotinib in rheumatoid arthritis are expected next year. It is also being tested for treating Crohn’s disease and ulcerative colitis. (Reporting by Ben Hirschler Editing by Alexander Smith)

First Published: 2018-09-12 12:20:10
Updated 2018-09-12 17:00:40

© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.