Lastly, I've written a couple times on Galapagos (NASDAQ:GLPG), a biotech that doesn't seem to get much attention here - a more conservative idea up 20% since my initial writeup, the promising pipeline of partnered assets with Gilead and AbbVie continues to progress in the clinic. Filgotinib is the company's crown jewel which has showed promising mid stage data in Crohn's disease, rheumatoid arthritis and ulcerative colitis, all of which are blockbuster potential indications.
As late stage studies progress I wouldn't be surprised if Gilead management finally makes an acquisition and decides to take the company out on the cheap. I have more grounded expectations for the company's cystic fibrosis program with AbbVie, as they appear to be behind market leader Vertex in the race to find a triple combination therapy that would treat 90% of all cystic fibrosis patients. Wholly owned asset GLPG1690 is being tested in IPF, a $2.4 billion market and growing. The drug has shown the potential to be combined with current market leader Esbriet, which would make it a high value asset if data in the second quarter is positive.
GLPG data by YCharts
As always, I encourage readers to either sell or take partial profits after significant runups to lock in gains and manage risk while retaining upside, as well as to choose a position size that fits their risk tolerance while avoiding overly exposing their portfolios to outsized losses.
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