03:53 AM EDT, 03/24/2026 (MT Newswires) -- Galapagos (GLPG) said Monday it is in advanced discussions for a strategic collaboration with Gilead (GILD) following the partner's agreement to purchase private biotechnology firm Ouro Medicines.

The proposed alliance centers on an experimental T cell engager therapy designed to treat severe inflammatory conditions and potentially provide a durable remission without ongoing immunosuppression, the company said.

Under the proposed terms, Galapagos would cover half of the roughly $1.68 billion upfront purchase price and $500 million in potential milestone payments required for the target enterprise, it said.

The business would absorb the acquired entity's operating assets and personnel to lead early-stage development of the drug in exchange for royalties on net sales, Galapagos said.

Additionally, the company also said the arrangement would exempt $500 million in capital from a legacy licensing deal to fund independent research or execute share repurchases.