Strategic Alliances

Strategic Alliances

Eli Lilly and Company and Galapagos our two pharmaceutical companies which have entered a collaboration agreement to develop new medicine for the treatment of osteoporosis. Galapagos Genomics, specializes in human gene sequences using its proprietary SilenceSelect(TM) and FLeXSelect(TM) platform technology and partnering with biotechnology and pharmaceutical companies (become a drug discovery fee-for-service business). It's primary research programs focus on three disease areas, Alzheimer's disease, bone diseases and psoriasis. Eli Lilly Co. is one of the world largest pharmaceutical companies in the world who specialize and concentrates in therapeutic, diabetes, neuroscience, cardiovascular diseases, and oncology.

The corporate strategy used between Lilly and Galapagos is the Horizontal alliance. For Galapagos this alliance with Lilly fits its strategy which is to maximize the value of their technology by reducing risk/reward sharing deals with top-tier pharmaceutical companies that the company already has alliances with. Through this alliance strategy, Galapagos is eligible to to receive up to 88 million euros in milestone payments for each target programme reached and additionally, Galapagos could receive up to 130 million euros in one-time sales milestones if a product reaches the market, as well as royalties on global sales. How this alliance will benefit Lilly, is through the R&D provided by Galapagos in their development of their proprietary osteoporosis drugs in which Lilly would have all rights and access to developed these candidate drugs further and commercialize these candidates drugs on a worldwide basis. This also helps Lilly in the field of osteoporosis, and leverages their own internal expertise with Evista, Forteo and arzoxifene. With enormous health care cost associated with osteoporosis estimated at $15 billion in the US alone which are related to the increase incidence of fractures in osteoporosis...