News Article

Gilead to buy CGI Pharm for $120M
Date: Jun 25, 2010
Source: Fierce Biotech ( click here to go to the source)

Featured firm in this article: Gilead Sciences Inc of Foster City, CA

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."