Dutch-Belgian biotech company Galapagos has agreed a $5.1bn deal with Gilead Sciences which sees the US group almost double its stake from 12.3% to 22%.
The deal includes a $3.95bn upfront payment and $1.1bn equity investment and gives Gilead exclusive access to all current and future compounds produced by Galapagos. Galapagos will use the cash to expand its research activities and build commercial infrastructure.
Galapagos also said it would ask its shareholders to allow Gilead to increase its ownership to up to 29.9%. This would be followed by a 10-year standstill clause that would prevent Gilead from accumulating any additional stake or seeking to take over the company.
Galapagos’ portfolio currently includes six molecules in clinical trials and more than 20 pre-clinical programmes, Gilead said.
The deal ‘reflects Gilead’s intent to grow our innovation network through diverse and creative partnerships,’ chief executive Daniel O’Day said in the website statement.
The two companies have also agreed to amend certain terms around the development and commercialisation of filgotinib, the experimental drug developed by Galapagos to treat rheumatoid arthritis and other inflammatory diseases.
Galapagos, which is based in Belgium and listed on the Amsterdam stock exchange, was formed in 1999.
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