UPDATE 1-Galapagos widens 'smoker's lung' deal with Roche

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Tue May 11, 2010 2:21am EDT

* Galapagos could get 150 mln eur more in payments

* Has increased number of targets being looked at (Adds details, background)

BRUSSELS May 11 (Reuters) - Drug discovery firm Galapagos (GLPG.BR) could be in line for up to 150 million euros ($201.3 million) in milestone payments after it expanded its development alliance with Roche (ROG.VX), it said on Tuesday.

This comes on top of the 400 million euros in payments the company has already said it could receive from the Swiss drugmaker under the original alliance, announced in January. [ID:nLDE60A05C]

Under the collaboration deal -- which was already the biggest that Galapagos has signed -- the Belgian company will use its specialised technology to help single out ways to tackle chronic obstructive pulmonary disease (COPD), commonly known as smoker's lung, which Roche could then take on.

The expansion means that the two companies will widen their search for treatments for the condition.

When Galapagos first announced the deal with Roche, its shares rose by as much as 8.1 percent. ($1=.7453 Euro) (Reporting by Ben deighton; Editing by Hans Peters)

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