Shares in Galapagos NV were down 9 percent Friday on news that Glaxosmithkline plc terminated development of its selective Janus kinase 1 (JAK1) inhibitor GSK2586184 in several chronic inflammatory conditions after a statin-associated drug-drug interaction became apparent in a phase I study.
Investor jitters probably accounts for the decline more than the loss of future milestones attached to the program. Galapagos, of Mechelen, Belgium, was in line for just €34 million (US$45.6 million) in outstanding payments, as well as double-digit sales royalties. Although read-through to its other selective JAK1 inhibitor, GLPG0634, may not be rational, it's also inevitable, particularly as the structure of GSK2586184 has not been publicly disclosed, making any structural comparisons impossible.
GLPG0634, which originated in the same alliance as GSK2586184 but which is now partnered with North Chicago-based Abbvie Inc., is of critical importance