IHS Global Insight Perspective | |
Significance | Gilead Sciences acquisition of CGI Pharma (both U.S.) is price tagged at US$120 million, split into upfront and milestone payments tied to the developmental success of CGI's discovery technology pipeline. |
Implications | Gilead will inherit a library of proprietary small-molecule kinase inhibitors with the lead compound applied as a potential treatment for serious inflammatory diseases. |
Outlook | The deal is to be completed by the third quarter of 2010. In the immediate term, Gilead will have to also examine CGI's collaboration strategy and determine if that path is to be pursued. |
Gilead Sciences (U.S.) has entered into a definitive agreement with the privately held development-stage pharma firm, CGI Pharma (U.S.), for a total consideration of US$120 million. The exact payment split has not been specified, but it appears that the majority will be in the form of an upfront payment, and the rest will be associated with achieving clinical development milestones.
Gilead's driving interest in CGI Pharma is in the latter's drug-discovery programme, which primarily includes proprietary small-molecule kinase inhibitors. Gilead believes that CGI's established protein kinase biology and small-molecule discovery provides a strong strategic fit with its existing pipeline. The drug-discovery programme consists of a lead preclinical compound spleen tyrosine kinase (Syk), which potentially has unique applications in the treatment of serious inflammatory diseases including rheumatoid arthritis.
CGI Pharma's Drug Discovery and Development Programme |
|
|
|
Source: CGI Pharma |
Outlook and Implications
The acquisition of CGI Pharma is the second major purchase for Gilead Sciences since the firm bought out CV Therapeutics (U.S.) in early 2009. That acquisition was far bigger in value—at US$1.4 billion—and involved Gilead outbidding Japan's Astellas Pharma. In comparison, the CGI Pharma acquisition primarily hinges on gaining key technologies in the small-molecule kinase inhibitors segment. The deal is to be closed in the third quarter of 2010, according to the firm, subject to unspecified closing conditions. Following the closure, CGI Pharma will be operating as a wholly-owned subsidiary of Gilead Sciences.
The deal reflects the overall trend in the pharmaceutical industry towards acquiring research pipeline that will bolster either late-stage portfolios or strengthen expertise in pre-clinical technologies aimed at niche areas. As Gilead has taken the acquisition route, further review of operations will focus on collaborations established by CGI Pharma and their status. The latter firm had entered into a research deal with Genentech (now part of Swiss pharma major Roche) in October 2006 which involved development and commercialisation of therapeutics for the potential treatment of multiple oncology and autoimmune indications. The exclusive licence and multi-year agreement had the potential to be extended, and saw CGI gain a US$25-million upfront payment.
Related Articles
Japan - United States: 13 March 2009: Gilead Sciences Steals CV Therapeutics from Astellas with Higher Offer