Galapagos Shares Rise After $5.1 Billion Gilead Partnership Announced
July 15 2019 - 7:58AM
Dow Jones News
By Dave Sebastian
Shares of Galapagos NV (GLPG) rose more than 15% premarket
Monday after the biotechnology company entered a $5.1 billion deal
with Gilead Sciences Inc. (GILD) on Sunday.
Gilead will gain rights outside Europe to the Belgian company's
treatments in development--namely a Phase 3 candidate for
idiopathic pulmonary fibriosis and option rights for a Phase 2b
candidate for osteoarthritis--in a broad collaboration aimed at
increasing growth at the drugmakers.
Gilead will also invest $1.1 billion, or EUR140.59 ($158.42) a
share, to increase its stake in the drugmaker to 22% from 12.3%.
That represents a 20% premium to the 30-day weighted average share
price of Galapagos, which trades in Amsterdam and on Nasdaq and has
a market value of around $7.9 billion.
Gilead could eventually boost its ownership stake to as much as
29.9%, assuming Galapagos shareholders sign off, The Wall Street
Journal reported. Gilead will get two seats on Galapagos's board of
directors as part of the deal, which was reported earlier by The
Wall Street Journal.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 15, 2019 07:43 ET (11:43 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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