STOCKS NEWS EUROPE-Galapagos shares rise on drug deal

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10:00GMT 09Dec2008-Galapagos shares rise on drug deal

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Shares in Belgian biotechnology company Galapagos (GLPG.BR) rise 2.8 percent, outperforming the DJ Stoxx European healthcare sector .SXDP, after news of drug discovery and compound management deals with Dart Neuroscience LLC.

"Today's announcement should be regarded as positive because in the current environment small biotech and pharma outsourced [research and development] spending is under pressure," KBC Securities analyst Jan De Kerpel says in a client note.

He says however it is unclear which milestones must be reached before Galapagos's service division Biofocus DPI can obtain the potential value of the contract of 4.1 million euros over three years.

De Kerpel keeps his "accumulate" rating and 5.00 euro target price for Galapagos. For more double click on [GLPG.BR]

Reuters Messaging rm://anne.jolis.reuters.com@reuters.net