Galapagos NV

· R&D operations in Zagreb fulfil Galapagos'' growing R&D capacity requirements
· Agreement provides for the preservation of jobs and expertise
· €14 M R&D contract with GSK for selected fee-for-service work at the Zagreb
site




Galapagos and GlaxoSmithKline today announced they have reached an agreement for
Galapagos to acquire GSK''s state-of-the art research centre in Zagreb, Croatia.
The  arrangement, which is subject  to closing conditions and  is expected to be
effective  as of 9 September 2010, provides for  ongoing employment of the staff
at  the centre and  will provide additional  capacity for Galapagos'' growing R&D
requirements.



Terms  of the deal include the acquisition of the research centre along with the
transfer  of approximately 130 staff.   In addition, Galapagos  will provide R&D
services  to GSK under a three year fee-for-service contract to the value of €14
M.  Further terms were not disclosed.



The  Zagreb centre  comes with  a strong  heritage in  the area of antibacterial
research  having  served  as  GSK''s  Macrolide  Center  of  Excellence  for Drug
Discovery   and   before  that  as  an  R&D  site  for  Pliva,  the  independent
pharmaceutical  company and founder of  the blockbuster antibiotic azithromycin.
 The  integrated capabilities in the operations will allow Galapagos to resource
research  programmes from molecule  through to the  clinic in alignment with its
milestone-driven  alliance  model.   The  site  will  form  the basis of a newly
created  third Galapagos business unit,  Internal Outsourcing, that will provide
flexible,  additional capacity for the Galapagos Group.  GSK''s senior researcher
from the Zagreb site, Dr. Radan Spaventi, will join the Galapagos Executive Team
as Senior Vice President.



"With  our eight strategic alliances, we have a need to expand our discovery and
development  organisation.  The team in Zagreb  brings a proven track record and
expertise  in disease and discovery development that matches that of our current
pharmaceutical  alliances," said  Onno van  de Stolpe,  CEO of  Galapagos.  "The
acquisition  answers  our  expansion  needs  and,  by bringing a majority of our
outsourced  programs back in  house, we can  achieve significant cost savings in
R&D."



The  arrangement  to  transfer  operations  of  the  large, pharma-standard, R&D
operations  along with the  transfer of the  GSK employees was reached following
GSK''s announcement in February 2010 to cease R&D activity at Zagreb as part of a
site rationalisation initiative.



Moncef  Slaoui, Chairman of GSK Research and Development, said: "This is a great
outcome  for GSK  and Galapagos  as it  meets the  capacity requirements of both
companies  and  at  the  same  time  assures  continuity  of  employment  and  a
preservation of expertise at this excellent scientific facility."



"Today''s acquisition fits very well into our financial strategy to control costs
and protect downside risks while managing the tremendous growth of our alliances
business,"  stated  Guillaume  Jetten,  Chief  Financial  Officer of Galapagos.
"Furthermore, the R&D contract with GSK and additional overflow work from within
the  Group  will  substantially  cover  our  internal  targets for site capacity
utilisation.   We remain confident of our full  year guidance for revenues of at
least  €135 M with positive  operating income and cash  flow, and a positive net
result in 2010."



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:  GLPG;  OTC:  GLPYY)  is  a mid-size biotechnology company
specialized  in the  discovery and  development of  small molecule  and antibody
therapies  with novel  modes-of-action.  The  Company is  progressing one of the
largest  pipelines  in  biotech,  with  six  clinical and over 50 small molecule
discovery/pre-clinical  programs.   Through  risk/reward-sharing  alliances with
GlaxoSmithKline,  Lilly, Janssen Pharmaceutica, Merck  & Co., Roche and Servier,
Galapagos  is eligible to  receive up to  €3.3 billion in downstream milestones,
plus  royalties.  Following the  acquisition of the  Zagreb research center, the
Galapagos  Group  has  over  800 employees  and  operates  facilities  in  seven
countries,  with  global  headquarters  in  Mechelen,  Belgium.   More  info at:
www.glpg.com


Cautionary statement regarding forward-looking statements
Under  the  safe  harbor  provisions  of  the U.S. Private Securities Litigation
Reform  Act of 1995, GSK cautions  investors that any forward-looking statements
or  projections  made  by  GSK,  including  those made in this announcement, are
subject  to  risks  and  uncertainties  that  may cause actual results to differ
materially  from those projected. Factors that  may affect GSK'' s operations are
described under ''Risk Factors'' in the ''Business Review'' in the company'' s Annual
Report on Form 20-F for 2009.

Galapagos safe harbour statement
This   release   may  contain  forward-looking  statements,  including,  without
limitation,   statements   containing   the   words  "believes,"  "anticipates,"
"expects,"  "intends,"  "plans,"  "seeks,"  "estimates," "may," "will," "could,"
"stands   to,"   and   "continues,"   as   well  as  similar  expressions.  Such
forward-looking  statements may  involve known  and unknown risks, uncertainties
and  other factors  which might  cause the  actual results, financial condition,
performance  or achievements of Galapagos, or industry results, to be materially
different from any historic or future results, financial conditions, performance
or  achievements expressed or implied  by such forward-looking statements. Given
these  uncertainties, the reader is  advised not to place  any undue reliance on
such  forward-looking statements. These forward-looking statements speak only as
of  the date of publication of  this document. Galapagos expressly disclaims any
obligation  to update  any such  forward-looking statements  in this document to
reflect  any change  in its  expectations with  regard thereto  or any change in
events, conditions or circumstances on which any such statement is based, unless
required by law or regulation.

Galapagos enquiries:
                                                 André Hoekema,
                                    SVP    Corporate   Development           +31
6 5151 7933


                                    Elizabeth Goodwin,
                                    Director  Investor  Relations            +31
6 2291 6240
                                    Email:ir@glpg.com





 GlaxoSmithKline enquiries:

 UK Media enquiries:          David Mawdsley       (020) 8047 5502

                              Claire Brough        (020) 8047 5502

                              Stephen Rea          (020) 8047 5502

                              Alexandra Harrison   (020) 8047 5502

                              Jo Revill            (020) 8047 5502



 US Media enquiries:          Nancy Pekarek        (919) 483 2839

                              Mary Anne Rhyne      (919) 483 2839

                              Kevin Colgan         (919) 483 2839

                              Sarah Alspach        (919) 483 2839





 European Analyst/Investor enquiries:   Sally Ferguson    (020) 8047 5543

                                        Gary Davies       (020) 8047 5503



 US Analyst/ Investor enquiries:        Tom Curry         (215) 751 5419

                                        Jen Hill Baxter   (215) 751 7002





[HUG#1443124]








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Source: Galapagos NV via Thomson Reuters ONE
  

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