Thursday, December 2, 2010

Galapagos NV. An Exciting and Well Balanced Biotech Stock Gives Pipeline Update

Galapagos NV is a Belgium based biotech stock. It is profitable and cash flow positive. Galapagos business model is a combination of selling their drug discovery services (Biofocus and Argenta) to big pharma co's (ex Glaxo SmithKline, Johnson & Johnson, Lilly, Merck and Roche) whilst having a proprietary and partnered development program. As such, they are self funded and sustainable. Thet also have a large-but very early stage-pipeline.

Today they announced that one of the five of their own programmes had successfully completed it's first in human trial. GLPG0429 is a drug in trials for cachexia (weight and muscle mass loss)  but they also believe it could be indicated for Duchenne muscular dystrophy.

This was a Phase I trial intended to demonstrate safety, tolerability and pharmokinetic profiling. No adverse effects were reported. They expect to conduct another Phase I to assess safety and tolerability in 2011, with a proof of concept trial pencilled in for late 2011.

As outlined above, Galapagos has a very early stage pipeline, but this flow of news is positive. Galapagos is a longer term speculative play, whose downisde is limited by their drug discovery services, yet provides good upside potential.


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