Gilead to buy CGI Pharm for $120M
Gilead Sciences will pay up to $120 million to purchase Branford, CT-based CGI Pharmaceuticals, a private developer focused on small molecule chemistry and kinase biology. The company's lead compound is in preclinical testing for the treatment of serious inflammatory diseases, including rheumatoid arthritis.
The majority of Gilead's $120 million will come as an upfront payment, with the remainder based on clinical development of drug targets. The deal is expected to close in the third quarter of the year. CGI will continue operations in Branford as a wholly-owned subsidiary of Gilead.
"The acquisition of CGI represents a unique opportunity to expand our research efforts in an interesting and promising area of drug discovery," says Norbert Bischofberger, Gilead's CSO, in a statement. "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."
- here's Gilead's release
ALSO: Gilead is closing R&D operations in Durham, NC, taking with it 150 local jobs. The drugmaker is consolidating its hepatitis research in Foster City, CA; that research is currently split between the two sites. In addition the layoffs, 30 Durham-based employees will be offered positions at the Foster City headquarters. Article
Gilead inks $1.4B buyout deal for CV Therapeutics
State cutbacks prompt Gilead to cut HIV prices
Gilead doubles jobs, space to boost development
Safety concerns force Gilead to halt mid-stage hep C trial