Gilead Sciences increases interest in Galapagos as part of the $ 5.1B deal
US .. Drugmaker Gilead Sciences will increase its stake in Belgian-Dutch biotechnology company Galapagos and gain rights outside Europe for its in-progress treatments as part of a $ 5.1 billion deal, the company announced on Sunday.
Gilead will make a prepayment of $ 3.95 billion to Galapagos and will invest $ 1.1 billion, or $ 158.49 per share, to increase its stake in the company to 22 percent from 12.3 percent, according to Journal. Galapagos will use revenue to expand and accelerate its R&D programs.
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Foster City, California-based drug maker, will now access the Galapagos research base of more than 500 researchers and will nominate two members of the Belgian-Dutch firm's board after the agreement is ended. The transaction is expected to close late in Q3 201[ads1]9.
| Ticker | Security | Last | Change | % Chg |
|---|---|---|---|---|
| GILD | GILEAD SCIENCES INC. | 66.26 | +0.07 | + 0.11% |
Gilead will receive rights to the Galapagos medication for idiopathic pulmonary fibrosis (Phase 3 candidate), option rights for his osteoarthritis drug (Phase 2b candidate) in the United States. The US firm also receives option rights on all Galapagos other current and future clinical programs outside Europe.
"We chose to work with Galapagos because of its groundbreaking goal and substance discovery platform, proven scientific capabilities and outstanding team," Gilead's CEO Daniel O & # 39; Day said in a statement. "Gilead also gets exclusive access to all current and future connections in the Galapagos rich pipeline, while Galapagos can expand its research activities and build commercial infrastructure."
Gilead will not be able to make a bid for more than 29.9 percent of Galapagos as part of a 10-year posture included in the deal.
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The two companies collaborated with each other in 2015 on a drug to treat rheumatoid arthritis, called filgotinib, which it plans to seek approval this year. During a modified deal, also announced Sunday, Galapagos will have more involvement in the global strategy for the drug and "participate more in the commercialization of the product in Europe," Gilead said.
