Gilead and Galapagos Close $5.0-Billion Research and Development DealBy
Gilead Sciences and Galapagos NV, a Mechelen, Belgium-based small-molecule drug company, have closed their previously announced global research and development collaboration agreement in a deal worth more than $5.0 billion.
Under the agreement, the closing of this transaction triggers an upfront license fee payment of $3.95 billion by Gilead to Galapagos. In addition, Gilead has made an equity investment in Galapagos of approximately $1.1 billion by subscribing for new shares at a price of EUR 140.59 ($156.15) per share, including issuance premium. As a result, Gilead now owns 13,589,686 ordinary shares of Galapagos, representing approximately 22% of the currently outstanding share capital of Galapagos.
In July 2019, Gilead and Galapagos announced a 10-year global research and development collaboration in which Gilead would gain access to a portfolio of compounds, including six molecules in clinical trials, more than 20 preclinical programs, and a drug-discovery platform. As part of the collaboration, Gilead gains rights to GLPG1690, Galapagos’ Phase III candidate for treating idiopathic pulmonary fibrosis.
Source: Gilead Sciences