By Michael Dabaie
Galapagos NV ADRs were down 13% to $57.40 after reporting data from several studies.
The Belgium-based biotechnology company said it had positive topline results with tyrosine kinase 2 inhibitor GLPG3667 in a Phase 1b study in psoriasis. The company said the study showed positive efficacy signal at week 4 and the data support initiation of Phase 2b dose finding study in psoriasis.
Galapagos also reported topline results with salt inducible kinase 2/3 inhibitor GLPG3970 in three patient studies. These were a Phase 1b study in moderate to severe psoriasis and two Phase 2a studies in moderate to severely active ulcerative colitis and rheumatoid arthritis.
The study in psoriasis patients showed improvement in Psoriasis Area and Severity Index score at Week 6.
The study in ulcerative colitis patients shows signs of "biologically important effects," but these findings didn't translate in a differentiation from placebo on change from baseline total Mayo Clinic Score, the company said.
In the rheumatoid arthritis study, at week 6 patients on GLPG3970 showed no differentiation from placebo on the majority of efficacy endpoints, Galapagos said.
"The data will be presented with greater detail during the 2Q21 earnings call, but based upon the initial data disclosed, it seems likely that both the GLPG3970 and GLPG3667 programs will move into the next phase of clinical studies for psoriasis, respectively," Raymond James said in a note.
J.P. Morgan called the GLPG3667 "data somewhat encouraging, if undifferentiated," and said the GLPG3970 data was disappointing. "We believe the net of these two updates is negative," the firm said in an analyst note.
"On the basis of the data reported last night, we believe expectations for GLPG's TYK2 could be slightly increased, as the asset looks at least broadly in the same ballpark as [Bristol Myers Squibb's] far more advanced TYK2. However, we see potential for even heavily risk-adjusted SIK2/3 forecasts taken out of models, given failure of the lead asset, with the company now needing to take a follow-on into new clinical trials," J.P. Morgan said.
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(END) Dow Jones Newswires