Gilead Sciences, Arcus Biosciences Ink 10-Year Partnership
May 27 2020 - 8:07AM
Dow Jones News
By Colin Kellaher
Gilead Sciences Inc. Wednesday said it will invest an initial
$200 million in Arcus Biosciences Inc. as part of a 10-year
partnership to co-develop and co-commercialize current and future
therapeutic product candidates in Arcus' pipeline.
Upon closing of the agreement, Arcus will receive $375 million
from Gilead, including a $175 million upfront payment and a $200
million equity investment priced at $33.54 a share, in line with
Tuesday's closing price for the Hayward, Calif., biopharmaceutical
company.
Gilead said Arcus will also be eligible for more than $1.6
billion in potential research-and-development funding, opt-in and
milestone payments with respect to its current clinical product
candidates.
Gilead, a Foster City, Calif., biopharmaceutical company, said
the deal gives it access to Arcus' clinical and preclinical
pipeline of immuno-oncology product candidates that target critical
biological pathways.
Gilead said it will have the right to appoint two individuals to
Arcus' board upon closing of the transaction, expected in the third
quarter, adding that will also have the right to buy more shares
from Arcus, up to a maximum of 35% of its voting stock, over the
next five years.
Shares of Arcus, which currently has about 46 million shares
outstanding and a market capitalization of roughly $1.54 billion,
fell 9.7% to $30.30 in premarket trading Wednesday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 27, 2020 07:52 ET (11:52 GMT)
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