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    • Gilead to raise stake...

    Gilead to raise stake in Belgian Biotech Galapagos in USD 5.1 billion deal: Report

    Medical Dialogues BureauWritten by Medical Dialogues Bureau Published On 2019-07-15T09:30:38+05:30  |  Updated On 17 Aug 2021 12:24 PM IST

    The deal is the largest Gilead has executed since new Chief Executive Officer Dan O'Day took the reins in March as he attempts to bolster the San Francisco giant's drug pipeline. Gilead is in danger of becoming a victim of its own success after launching some of the top drugs of all time, its bestselling hepatitis-C franchise.


    New Delhi: Gilead Sciences Inc. agreed to pay $5.1 billion to raise its stake in Belgian biotechnology company Galapagos NV to deepen its research into inflammatory diseases and other disorders.


    The deal is the largest Gilead has executed since new Chief Executive Officer Dan O'Day took the reins in March as he attempts to bolster the San Francisco giant's drug pipeline. Gilead is in danger of becoming a victim of its own success after launching some of the top drugs of all time, its bestselling hepatitis-C franchise. Sales from those therapies have since declined due to increased competition.


    Under the agreement, Gilead, which will pay $3.95 billion upfront to Mechelen, Belgium-based Galapagos and invest $1.1 billion to raise its stake to 22% from 12.3%, the companies said in a statement. The investment, at 140.59 euros a share, is 9.7% higher than the Belgian company's closing price on Friday.


    Read Also: Gilead Sciences chooses Chengdu Hi-tech Zone for Western China Operation Center project


    "Gilead will significantly expand its pipeline in a smart and financially savvy expanded partnership deal with Galapagos, essentially gaining options on everything in their pipeline without having to acquire the company full out," Jefferies analysts including Michael J. Yee and Andrew Tsai wrote in a note.


    As Gilead seeks to fill the growing hole left from its hepatitis drugs, the Galapagos announcement may signal a shift in focus. The smaller biotech has no oncology programs and instead focuses on research into diseases that have to do with inflammation and fibrosis, which is a kind of internal scarring.


    Read Also: CMA refers Illumina-Pacific Biosciences deal for in-depth investigation


    Gilead has also had research programs in such diseases, including through its collaboration with Galapagos, though some had speculated it may stake its future on cancer. Gilead is already the biggest shareholder of the Belgium company before the increase in stake, according to data compiled by Bloomberg. Now it gets the option to license all of Galapogos's future, late-stage drug candidates.

    Biotechnology companyGalapagosGalapagos NVGileadGilead SciencesHepatitishepatitis Cinflammatory diseaseoncologypharmapharma news
    Source : Bloomberg

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    Medical Dialogues Bureau
    Medical Dialogues Bureau

      Medical Dialogues Bureau consists of a team of passionate medical/scientific writers, led by doctors and healthcare researchers.  Our team efforts to bring you updated and timely news about the important happenings of the medical and healthcare sector. Our editorial team can be reached at editorial@medicaldialogues.in. Check out more about our bureau/team here

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