Gilead Sciences to Acquire CGI Pharmaceuticals for up to $120 Million
June 25 2010 - 8:30AM
Business Wire
Gilead Sciences, Inc. (Nasdaq:GILD) and CGI Pharmaceuticals,
Inc., a privately-held, development-stage pharmaceutical company
focused on small molecule chemistry and kinase biology, today
announced the signing of a definitive agreement pursuant to which
Gilead will acquire CGI. Under the terms of the agreement, Gilead
will acquire CGI for up to $120 million, the majority as an upfront
payment and the remaining based on clinical development progress,
all of which will be financed through available cash on hand.
Gilead anticipates that the deal would close in the third quarter
of 2010, subject to satisfaction of certain closing conditions.
After closing, CGI will continue operations in Branford as a
wholly-owned subsidiary of Gilead.
CGI has generated a library of proprietary small molecule kinase
inhibitors. The lead preclinical compound from this library targets
spleen tyrosine kinase (Syk) and could have unique applications for
the treatment of serious inflammatory diseases, including
rheumatoid arthritis.
“The acquisition of CGI represents a unique opportunity to
expand our research efforts in an interesting and promising area of
drug discovery,” said Norbert W. Bischofberger, PhD, Gilead’s
Executive Vice President, Research and Development and Chief
Scientific Officer. “CGI has established itself in the area of
protein kinase biology and small molecule discovery, and the
company’s scientific leadership and expertise represents a strong
strategic fit with Gilead’s existing research organization. We look
forward to advancing compounds in CGI’s portfolio toward clinical
development.”
“We are pleased to join the Gilead organization and look forward
to partnering with the company to deliver on the promise of
selective kinase inhibitors in our proprietary library of
compounds,” said Mark Velleca, MD, PhD, Founder and Senior Vice
President of CGI. “We are confident that Gilead’s knowledge and
experience developing small molecule candidates for a range of
clinical indications will be instrumental in helping to progress
our compounds toward clinical development for diseases where
tremendous unmet medical need exists.”
About CGI Pharmaceuticals,
Inc.
CGI Pharmaceuticals, Inc. is a private, development-stage
pharmaceutical company that has leveraged its small molecule
chemistry and kinase biology expertise to discover and develop an
innovative pipeline of small molecule therapeutics for multiple
oncology and immunology-based indications. CGI’s investors include:
MPM Capital, Flagship Ventures, Vector Fund Management, Coastview
Capital, Vantage Point Venture Partners, Lilly BioVentures,
RiverVest Venture Partners, CHL Medical Partners, Connecticut
Innovations, Oxford Bioscience Partners, and Emerging Technology
Partners. CGI's corporate headquarters and research laboratories
are located in Branford, Connecticut. For additional information
about the company, please visit: www.cgipharma.com.
About Gilead
Sciences
Gilead Sciences is a biopharmaceutical company that discovers,
develops and commercializes innovative therapeutics in areas of
unmet medical need. The company’s mission is to advance the care of
patients suffering from life-threatening diseases worldwide.
Headquartered in Foster City, California, Gilead has operations in
North America, Europe and Australia.
Forward-Looking
Statement
This press release includes forward-looking statements, within
the meaning of the Private Securities Litigation Reform Act of
1995, that are subject to risks, uncertainties and other factors,
including the risks to both companies that the acquisition of CGI
will not be consummated as the transaction is subject to certain
closing conditions. In addition, if and when the transaction is
consummated, there will be risks and uncertainties related to
Gilead’s ability to successfully integrate the business and
employees of CGI in Gilead’s business and Gilead’s ability to
successfully advance CGI’s pipeline programs. These risks,
uncertainties and other factors could cause actual results to
differ materially from those referred to in the forward-looking
statements. The reader is cautioned not to rely on these
forward-looking statements. Gilead directs readers to its Quarterly
Report on Form 10-Q for the quarter ended March 31, 2010. Gilead
claims the protection of the Safe Harbor contained in the Private
Securities Litigation Reform Act of 1995 for forward-looking
statements. All forward-looking statements are based on information
currently available to Gilead, and Gilead assumes no obligation to
update any such forward-looking statements.
For more information on Gilead
Sciences, please visit the company's website at www.gilead.com or
call Gilead Public Affairs at 1-800-GILEAD-5 or 1-650-574-3000.
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