Galapagos announces achievement of milestones totaling ¤3.2 million in osteoarthritis alliance with GlaxoSmithKline

    Mechelen,  Belgium  -  Galapagos  NV  (Euronext  &  LSE:  GLPG),   an
integrated drug  discovery  company,  announces  today  that  it  has
reached two significant milestones  in its multi-year drug  discovery
alliance with GlaxoSmithKline in osteoarthritis, triggering  payments
of ¤3.2 million from GSK.

In June 2006, GSK's Center of Excellence for External Drug  Discovery
(CEEDD)   and   Galapagos    initiated   a    program   to    deliver
disease-modifying drugs  with  clinical  Proof of  Concept  to  GSK's
global research  and  development  organization.   The  aim  of  this
agreement is for Galapagos to  expand its portfolio of novel  targets
in the  field  of  osteoarthritis,  to  conduct  compound  screening,
identify tractable hits, pursue a number of hit-to-lead programs, and
develop  the  resulting  leads  into  candidate  selection  compounds
through to a successful Proof  of Concept in clinical research  Phase
IIa.  GSK has exclusive options to further develop and  commercialize
these compounds on a worldwide basis.  Galapagos will have the  right
to further develop and commercialize compounds for which GSK does not
exercise its option.   The alliance  is worth up  to ¤130 million  in
milestones for  two  marketable products  to  Galapagos, plus  up  to
double-digit royalties on global product sales.

Today's announcement marks  the second and  third milestone  payments
made to Galapagos since the start of the program.  In January of this
year, Galapagos announced the alliance's first milestone,  triggering
a ¤400,000 payment from GSK.

"We are proud to have reached these significant milestones in the
osteoarthritis program," said Onno van de Stolpe, Chief Executive
Officer of Galapagos.  "Thanks to the alliance with GSK we have been
able to staff the osteoarthritis program within Galapagos to a
critical level and it is satisfying to see that our research efforts
are delivering the progress that triggers these payments."

About osteoarthritis
Osteoarthritis (OA) is the most common form of arthritis, typically
affecting people aged 45 and older.  It is a degenerative disease
characterized by joint destruction and loss of articular cartilage.
Cartilage is the slippery tissue that covers the ends of bones in a
joint.  Healthy cartilage allows bones to glide over one another.  It
also absorbs energy from the shock of physical movement.  In OA, the
surface layer of cartilage breaks down and wears away.  This allows
bones under the cartilage to rub together, causing pain, swelling,
and loss of motion of the joint.  Over time, the joint may lose its
normal shape.  Also, bone spurs - small growths called osteophytes -
may grow on the edges of the joint.  Bits of bone or cartilage can
break off and float inside the joint space.  This causes more pain
and damage.

No currently available treatments prevent OA or even reverse or block
the disease process.   Treatment of OA involves pain control, weight
control, and exercise.  Many OA patients have pain that persists
despite these measures.  Some of these patients use non-steroidal
anti-inflammatory drugs (NSAIDs) that relieve the symptoms without
changing the course of the underlying disease.   Healthcare providers
are concerned about long-term NSAID use due to serious possible side
effects.

It is expected that with the aging of the population, more
individuals will be prone to develop OA.   As mobility of seniors is
of high importance to maintaining a high quality of life, preventing
the severity of OA is seen as an immense clinical need over the next
decade.


About the CEEDD
GlaxoSmithKline is enhancing the way it discovers and develops drugs
by creating a small dedicated team who will feed the GSK pipeline
through the efforts of its external alliances.  The CEEDD (Center of
Excellence for External Drug Discovery) was formed as further
validation of GSK's strategy to create small, independent and
accountable R&D teams (Centers of Excellence for Drug Discovery or
CEDDs).  In essence, the CEEDD will 'virtualise' a portion of the GSK
pipeline; namely, from Target to Clinical PoC, by forming multiple
risk-sharing/reward-sharing alliances.  Capitalising on the speed and
efficiency of its external alliances will allow GSK to deliver
pharmaceuticals products faster to patients.

About GlaxoSmithKline
GlaxoSmithKline - one of the world's leading research-based
pharmaceutical and healthcare companies - is committed to improving
the quality of human life by enabling people to do more, feel better
and live longer.

About Galapagos
Galapagos (Euronext Brussels, GLPG; Euronext Amsterdam, GLPGA; London
AiM: GLPG) is a drug discovery company with clinical and pre-clinical
programs in bone and joint diseases, cachexia, and menopausal hot
flashes.  Its division BioFocus DPI offers a full suite of
target-to-drug discovery products and services to pharmaceutical and
biotech companies, encompassing target discovery and validation,
screening and drug discovery through to delivery of pre-clinical
candidates.  BioFocus DPI also provides adenoviral reagents for rapid
identification and validation of novel drug targets, compound
libraries for drug screening as well as chemogenomics and ADMET[1]
database products to select targets and compounds.  Galapagos
currently employs 450 people and operates facilities in eight
countries, with global headquarters in Mechelen, Belgium.  More
information about Galapagos and BioFocus DPI can be found at
www.glpg.com.


CONTACT

Galapagos NV
Onno van de Stolpe, CEO
Tel: [phone]
[e-mail]


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[1] ADMET is the acronym for Absorption, Distribution, Metabolism,
Excretion and Toxicity: Meeting parameters against these five
criteria is critical to the success of a pharmaceutical compound as a
drug.






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