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The US drug maker Gilead Sciences will increase its stake in the Belgian-Dutch biotechnology company Galapagos and will get rights outside Europe on its treatments under development under a $ 5.1 billion contract dollars, the company said Sunday.
Gilead will make an initial payment of $ 3.95 billion to the Galapagos and will invest $ 1.1 billion, or $ 158.49 per share, to increase its ownership interest in the company to 22%, up from 12.3%, according to the report. newspaper. The Galapagos will use the recipes to "develop and accelerate" their research and development programs.
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The drug manufacturer based in Foster City, California, will now have access to the Galapagos research base, which has more than 500 scientists, and will appoint two members to the board of directors of the Belgian-Dutch company after finalization. of the transaction. The transaction is expected to close at the end of the third quarter of 2019.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| BROWN | GILEAD SCIENCES INC. | 66.26 | +0.07 | + 0.11% |
Gilead will obtain rights to Galapagos drugs for idiopathic pulmonary fibrosis (Phase 3 candidate) and option rights for its osteoarthritis drug (Phase 2b candidate) in the United States. The US company will also be granted option rights on all other current and future Galapagos clinical programs. out of Europe.
"We chose to partner with Galapagos because of its pioneering platform for drug discovery and targets, its proven scientific capabilities and outstanding team," said Gilead General Manager Daniel O & # 39; Day, in a statement. "Rich pipeline while Galapagos is able to expand its research activities and build a commercial infrastructure."
Gilead will not be able to bid for more than 29.9% of the Galapagos as part of a 10-year shutdown included in the deal.
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In 2015, the two companies teamed up to create a rheumatoid arthritis drug, filgotinib, which is expected to be approved for this year. According to a modified agreement, also announced on Sunday, the Galapagos will be more involved in the global drug strategy and will "be more involved in product marketing in Europe," Gilead said.
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