This development is part of Galapagos’ strategy to transform into a new biotechnology enterprise with a robust research and development pipeline for treating disease immunology and oncology fields.
The latest deal comes after the companies signed a letter of intent on 30 October last year.
Alfasigma will acquire the complete Jyseleca business, including all associated activities as well as nearly 400 staff of Galapagos across 14 European countries.
The business comprises the European and UK marketing authorisations, the commercial, medical affairs and development works linked to Jyseleca.
Galapagos is eligible to receive an upfront payment of €50m as well as sales-based milestone payments of up to €120m and royalties on sales in Europe.
Furthermore, Alfasigma will receive up to €40m by June next year for works linked to the development of Jyseleca from Galapagos.
Filgotinib, marketed as Jyseleca, received approval in Europe and Japan to treat moderate to severe active rheumatoid arthritis (RA) and ulcerative colitis (UC) in adults.
It is offered in 100mg and 200mg formulations in these countries.
Conditional to this agreement, former Galapagos chief commercial officer Michele Manto, will become part of Alfasigma.
Manto resigned from his executive roles at Galapagos by the end of December last year.
Galapagos CEO and chairman Dr Paul Stoffels said: “Michele has been instrumental in the execution of our commercial strategy and has been a key contributor to the development and success of Jyseleca, making a difference to over 20,000 patients across Europe.
“We would like to thank Michele for his contributions to Galapagos and are confident that his planned transition to Alfasigma will ensure business continuity through his close collaboration with the Jyseleca team.
“We are very pleased that the agreement with Alfasigma will enable the continued availability of Jyseleca to patients while supporting a promising future for the Jyseleca business and its dedicated employees.”