Belgian drug development company Galapagos is the top riser inBrussels after it reveals that partner GlaxoSmithKline will start totest one of its molecules to treat two new diseases.
GlaxoSmithKline licensed the molecule, known as GSK2586184, in February lastyear as part of deal to pay future milestones of up to 34 million euros ($46million) and royalties.
The British drugmaker has now started mid-stage Phase II clinical trials onthe molecule for skin disorder psoriasis and lupus, a disease that causes partsof the body to become inflamed.
Galapagos' share price rises as much as 8.3 percent to 19.50 euros on thenews, close to the all-time high of 19.89 euros reached last month.
"The formal initiation of the... study is positive," says KBC Securities ina note to clients. "We increase our probability of success assumption to 25percent for this project."
($1 = 0.7392 euros)
Reuters messaging rm://ben.deighton.thomsonreuters.com@reuters.net
Glaxosmithkline (GSK)