BridGene Biosciences Expands Strategic Collaboration with Galapagos to Develop Selective Oral SMARCA2 PROTAC in Precision Oncology

Rhea-AI Summary

BridGene Biosciences has expanded its strategic collaboration with Galapagos NV (NASDAQ: GLPG) to develop a selective oral SMARCA2 PROTAC for precision oncology. The collaboration, which builds on their January 2024 partnership, combines BridGene's PROTAC discovery engine with Galapagos' expertise in selective ATPase small molecules. BridGene is eligible to receive up to $159 million in total payments, including upfront and milestone payments, as well as tiered royalties on net sales. Galapagos will have exclusive rights for further development and commercialization of the preclinical candidate.

This expanded partnership aims to advance drug discovery for challenging oncology targets, leveraging the strengths of both companies to develop precision medicines for cancer patients with critical unmet needs. The collaboration underscores the importance of strategic alliances in advancing drug development efforts and validates BridGene's innovative approach in small molecule drug discovery for hard-to-drug targets.

Positive

• Expanded collaboration with Galapagos NV, a major pharmaceutical company
• Potential for up to $159 million in total payments
• Eligibility for tiered royalties on net sales of resulting products
• Validation of BridGene's PROTAC discovery engine and innovative approach
• Combination of complementary expertise in drug discovery

Negative

• Dependence on Galapagos for further development and commercialization
• Uncertain timeline for preclinical candidate development
• No guaranteed success in developing a viable SMARCA2 PROTAC

Insights

Biotechnology Analyst

The expanded collaboration between BridGene Biosciences and Galapagos marks a significant milestone in the pursuit of precision oncology treatments. This partnership, focusing on the development of a selective oral SMARCA2 PROTAC, represents a cutting-edge approach in targeting previously "undruggable" proteins.

The financial terms of the deal are particularly noteworthy. With BridGene eligible to receive up to $159 million in total payments, including upfront and milestone payments, this collaboration underscores the high value placed on innovative drug discovery platforms in the biotech industry. The tiered royalties on potential future net sales further align the interests of both companies in the long-term success of the developed products.

From an investor's perspective, this deal validates BridGene's PROTAC discovery engine and its ability to attract major pharmaceutical partners. For Galapagos, it represents a strategic move to bolster its oncology pipeline with a potentially first-in-class therapy. The combination of BridGene's PROTAC expertise with Galapagos' selective ATPase small molecules knowledge creates a synergy that could accelerate the development of novel cancer treatments.

However, it's important to note that drug development, especially for novel targets, carries inherent risks. While the collaboration is promising, investors should be aware that it may take several years before any potential products reach the market, if at all. The success of this venture will depend on the ability to overcome scientific challenges and navigate the complex regulatory landscape of oncology drug development.

Oncology Researcher

The focus on developing a selective oral SMARCA2 PROTAC is a significant advancement in the field of precision oncology. SMARCA2, a component of the SWI/SNF chromatin remodeling complex, has emerged as a promising target in cancer therapy, particularly in cases where its paralog SMARCA4 is inactivated.

The use of PROTAC technology to target SMARCA2 is particularly intriguing. PROTACs have the potential to overcome limitations of traditional small molecule inhibitors by inducing selective degradation of target proteins. This approach could lead to more effective and durable responses in cancer treatment, especially for targets that have proven challenging with conventional approaches.

The collaboration between BridGene and Galapagos combines two critical elements: BridGene's expertise in PROTAC discovery and Galapagos' knowledge of selective ATPase small molecules. This synergy could potentially accelerate the development of a highly specific SMARCA2 degrader, minimizing off-target effects and improving the therapeutic window.

While the potential of this approach is exciting, it's important to remember that PROTAC technology, especially for transcription-related targets like SMARCA2, is still relatively new in clinical applications. The success of this program will depend on overcoming challenges such as optimizing cellular penetration, achieving sufficient degradation efficiency and demonstrating a favorable safety profile in preclinical and clinical studies.

Financial Analyst

The expanded collaboration between BridGene Biosciences and Galapagos represents a significant financial opportunity for BridGene, while also bolstering Galapagos' oncology pipeline. The potential $159 million deal value, including upfront payments, preclinical, clinical and commercial milestones, provides BridGene with substantial near-term and long-term revenue potential.

For Galapagos (NASDAQ: GLPG), this deal aligns with its strategy to expand its oncology portfolio through external collaborations. While the upfront costs are not disclosed, the milestone-based structure of the deal allows Galapagos to manage financial risk by tying payments to project success.

Investors should note that this type of collaboration is becoming increasingly common in the biotech industry, allowing larger companies like Galapagos to access innovative technologies while providing smaller companies like BridGene with funding and expertise to advance their platforms.

The tiered royalties on potential net sales represent a significant long-term value driver for BridGene, assuming successful development and commercialization. However, it's important to consider that the path to market for novel oncology drugs is long and risky, with only a small percentage of preclinical candidates ultimately achieving FDA approval.

For Galapagos shareholders, while this deal represents a promising addition to the company's pipeline, its financial impact will likely be minimal in the short term. The true value of this collaboration will only be realized if the SMARCA2 PROTAC program progresses successfully through clinical trials and reaches the market.

BridGene Eligible to Receive Up to $159 Million in Total Payments

SAN JOSE, Calif., Aug. 1, 2024 /PRNewswire/ -- BridGene Biosciences, Inc., a leader in the discovery of small molecule drugs for traditionally "hard-to-drug" targets, today announced an expansion to its strategic collaboration and licensing agreement with Galapagos NV (Euronext: GLPG) (NASDAQ: GLPG). This new collaboration builds upon the partnership initiated in January 2024, focusing on the discovery of a highly selective oral SMARCA2 small molecule proteolysis targeting chimera (PROTAC).

Under the expanded agreement, BridGene will leverage its PROTAC discovery engine in combination with Galapagos' expertise in selective ATPase small molecules. The collaboration aims to advance the molecule into a preclinical candidate, with Galapagos holding exclusive rights for further development and commercialization. Galapagos will provide BridGene with upfront and preclinical milestone payments, alongside additional payments based on clinical and commercial milestones, potentially bringing the total deal value to $159 million. BridGene is also eligible to receive tiered royalties on net sales of each product resulting from the collaboration.

"We are excited to deepen our collaboration with Galapagos to discover new drugs targeting critical and challenging oncology targets," stated Ping Cao, Ph.D., Co-Founder and CEO of BridGene Biosciences. "The depth of Galapagos' scientific expertise in oncology aligns perfectly with our capabilities. This collaboration will further reinforce our strong track record in identifying drugs for difficult targets. We aim to create partnerships that significantly boost the likelihood of success by integrating our innovative discovery platform with the wide-ranging scientific and clinical expertise of partners like Galapagos."

"We are pleased to expand our partnership with BridGene Biosciences, a company which has a strong track record in small molecule drug discovery for hard-to-drug targets," said Pierre Raboisson, Ph.D., Senior Vice President and Head of Small Molecules Discovery at Galapagos. "Our expanded collaboration leverages the unique strengths of both companies and allows us to combine our in-house expertise and technological platforms with BridGene's cutting-edge PROTAC discovery engine to develop precision medicines for cancer patients with critical unmet needs."

This expanded collaboration highlights the validation of BridGene's innovative approach through strategic partnerships, emphasizing the importance of these alliances to advance drug development efforts. Both BridGene and Galapagos are committed to improving patient outcomes by developing potential best-in-class precision medicines that tackle challenging targets in cancer, with a strong focus on addressing high unmet medical needs through targeted protein degradation technology.

About BridGene Biosciences
BridGene is a biotechnology company focused on discovering and developing innovative small molecules that drug traditionally undruggable targets, providing new paths to treat diseases. By using its proprietary chemoproteomic platform, IMTAC™, BridGene can screen small molecules against all proteins in live cells to discover drug candidates for high-value and previously undruggable targets. BridGene is advancing a diversified pipeline of first-in-class drugs for targets in multiple disease areas. For more information, visit https://bridgenebio.com/.

About Galapagos
Galapagos is a biotechnology company with operations in Europe and the U.S. dedicated to developing transformational medicines for more years of life and quality of life. Focusing on high unmet medical needs, Galapagos synergizes compelling science, technology, and collaborative approaches to create a deep pipeline of best-in-class small molecules, cell therapies, and biologics in oncology and immunology. With capabilities from lab to patient, including a decentralized cell therapy manufacturing network, Galapagos is committed to challenging the status quo and delivering results for patients, employees, and shareholders. For additional information, please visit www.glpg.com or follow Galapagos on LinkedIn or X. 

Contact
Tiberend Strategic Advisors, Inc.
Jonathan Nugent (investors)
205-566-3026
jnugent@tiberend.com

Dave Schemelia (media)
609-468-9325
dschemelia@tiberend.com

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SOURCE BridGene Biosciences

FAQ

What is the focus of BridGene and Galapagos' expanded collaboration?

The expanded collaboration focuses on developing a highly selective oral SMARCA2 small molecule proteolysis targeting chimera (PROTAC) for precision oncology.

How much could BridGene receive from the collaboration with Galapagos (NASDAQ: GLPG)?

BridGene is eligible to receive up to $159 million in total payments, including upfront, preclinical, clinical, and commercial milestone payments, as well as tiered royalties on net sales.

When did BridGene and Galapagos (GLPG) initiate their original partnership?

The original partnership between BridGene and Galapagos was initiated in January 2024.

What technology is BridGene contributing to the collaboration with Galapagos (GLPG)?

BridGene is contributing its PROTAC discovery engine to the collaboration with Galapagos.