US pharmaceutical giant Gilead Sciences will increase its stake in Belgian-Dutch biotech firm Galapagos and will obtain rights outside of Europe for its ongoing treatments as part of a $ 5.1 billion deal, the company announced on Sunday.
Gilead will make an advance payment 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 the Journal. Galapagos will use revenues to "expand and accelerate" its R & D programs.
The drug manufacturer based in Foster City, California, will now have access to the Galápagos research base of more than 500 scientists and appoint two members of the board of directors of the Belgian-Dutch firm after the agreement closes. The transaction is expected to close at the end of the third quarter of 2019.
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Gilead will obtain the rights to Galapagos medicines for idiopathic pulmonary fibrosis (a Phase 3 candidate), option rights for his osteoarthritis medication (Phase 2b candidate) in the US. UU The US firm also receives option rights on all other current and future clinical programs of the Galapagos. out of Europe
"We chose to partner with Galapagos because of its pioneering platform for drug discovery and objectives, proven scientific capabilities and an outstanding team," Gilead CEO Daniel O & # 39; Day said in a statement. "Gilead also gets exclusive access to all current and future compounds in the Galapagos." A rich pipeline while the Galapagos can expand its research activities and build commercial infrastructure.
Gilead will not be able to bid for more than 29.9 percent of Galapagos as part of a 10-year suspension included in the agreement.
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The two companies partnered with each other in 2015 on a drug to treat rheumatoid arthritis, called filgotinib, which plans to seek approval for this year. Under an amended agreement, also announced on Sunday, Galápagos will have a greater participation in the global strategy for the drug and will participate "more widely in the commercialization of the product in Europe," said Gilead.