Galapagos NV (NASDAQ:GLPG) Q3 2018 Earnings Conference Call Transcript
Oct 25, 2018 • 10:15 am ET
Welcome to the Galapagos webcast. At this point, I would like to hand the call over to Elizabeth Goodwin. Please go ahead, ma'am.
Thank you. Welcome all to the audio webcast of Galapagos' Q3 2018 results and annual R&D update. I'm Elizabeth Goodwin, IR, and I'll be hosting today's event. This recorded webcast is accessible via the Galapagos website home page and will be available for replay later on today. Note that we will be posting the file copies of our webcast slides to the website as well later today, so that your questions can be included. We request that you call into the telephone number given in last nights press release 3224040659 and the code is 2357358.
(Forward-Looking Cautionary Statement)
Let's look at the agenda for today. Today's participants will involve some prepared remarks from our executives. Today, we also welcome Dr. Philip Mease from the University of Washington who will be joining us from ACR in Chicago. For Dr. Mease, we will open up the floor and phone very briefly for a couple of questions immediately following his talk. But for the others, I request you hold your questions until the Q&A session at the end.
So with this point, I'd really like to hand over to Onno van de Stolpe, our CEO, who's joining us remotely from the Netherlands today. The folks here in the room can see him. And Onno, please go ahead and start our talk.
Onno van de Stolpe
Thank you, Elizabeth. Pleasure to address people in New York and the rest of the audience on the webcast. Good morning, good afternoon. Happy to give an intro on what's happening at Galapagos. And of course, we'll start with the announcement we did this morning, or late last night regarding the revised agreement with AbbVie. There has been a lot of uncertainty in the market regarding what was going to happen with the cystic fibrosis program especially after the last press release, where we announced we were reevaluating the collaboration with AbbVie.
Now we have come to the conclusion that in this space, AbbVie is the better partner to continue in the program than Galapagos. Galapagos is really a new mode of action company focusing on novel targets that we discover with our platform and has been moved forward. And clearly, in the heat of competition that the CF space is in, it is more a pharma play than a biotech play. And I think both parties have understood that and we've come to a very good arrangement, I think, both for AbbVie as well as for ourselves regarding the future of the program with a consequence that all programs move to AbbVie. They pay us an upfront $45 million. We get nice milestones along the way, if they reach their goal of getting triples into patients and to the market. And we also get very nice royalties ranging in percentage based on the number of candidates in there.
All in all, I think we are very pleased with this