BioWorld International Correspondent

Belgian functional genomics specialist Galapagos Genomics NV is taking a step outside its usual domain of drug target discovery and validation. The Mechelen-based firm is applying its knowledge of bone and joint biology to a nutraceuticals partnership with the Degussa Bioactives arm of Degussa AG, of Dusseldorf, Germany, that is designed to find substances that can contribute to managing arthritis.

Terms were not disclosed, but Galapagos will gain milestones and royalties on products that are commercialized. "It's quite an interesting deal, if something comes out of it. It's not that much different from a pharma deal," Dirk Pollet, Galapagos' vice president of business development, told BioWorld International.

The partnership is the first nutraceuticals deal for Galapagos. Does the move signal a diversification strategy on behalf of the company? "Not necessarily," Pollet said. "I think it's an opportunity that was out there to leverage our expert knowledge in bone biology. We remain focused on development and validation of therapeutics." Its main areas of focus to date have been Alzheimer's disease, bone and joint disease and psoriasis.

Galapagos will screen a significant portion of Degussa's compound library against its existing cellular assays and new ones it is designing as part of the collaboration. "There is a specific set of genes we will be looking at," Pollet said.

The company, he said, is open to more such agreements, but it also is anticipating a pickup in the more traditional form of deal making. "I think we have gone through the deep part of the trough," Pollet said. "We are certainly expecting to close additional deals shortly."

Its existing alliances, in the main, involve target validation or gene function research. Its roster of partners includes Pharmacia Corp., of Peapack, N.J.; Procter & Gamble Co., of Cincinnati; Johnson & Johnson, of New Brunswick, N.J.; and several smaller pharmaceutical and biotechnology firms. "We are certainly trying to set up partnerships that will give us access to chemistry, to move us up the value chain," Pollet said.