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Gilead to acquire CGI for up to $120 mln: they make anti-inflammation drugs
 
 
  Fri Jun 25, 2010 9:02am EDT
 
* Funding will come from cash on hand
 
* Expects deal to close in the third quarter
 
BOSTON, June 25 (Reuters) - Gilead Sciences Inc (GILD.O) said on Friday it agreed to acquire privately held drug discovery company CGI Pharmaceuticals Inc for up to $120 million.
 
CGI has generated a library of small molecule kinase inhibitors. Its lead compound could have unique applications for the treatment of inflammatory diseases, including rheumatoid arthritis, Gilead said.
 
Funding for the deal will come from cash on hand. Most will consist of an upfront payment, and the remainder will be based on clinical development progress.
 
Foster City-based Gilead is a leading maker of treatments for HIV/AIDS. The company expects the deal to close in the third quarter.
 

Gilead Sciences to Acquire CGI Pharmaceuticals for up to $120 Million - Deal to Broaden Gilead's Research Expertise into Kinase Biology and Chemistry
 
- FOSTER CITY, Calif. & BRANFORD, Conn., Jun 25, 2010 (BUSINESS WIRE) -- Gilead Sciences, Inc. /quotes/comstock/15*!gild/quotes/nls/gild (GILD 36.58, +0.86, +2.39%) and CGI Pharmaceuticals, Inc., a privately-held, development-stage pharmaceutical company focused on small molecule chemistry and kinase biology, today announced the signing of a definitive agreement pursuant to which Gilead will acquire CGI. Under the terms of the agreement, Gilead will acquire CGI for up to $120 million, the majority as an upfront payment and the remaining based on clinical development progress, all of which will be financed through available cash on hand. Gilead anticipates that the deal would close in the third quarter of 2010, subject to satisfaction of certain closing conditions. After closing, CGI will continue operations in Branford as a wholly-owned subsidiary of Gilead.
 
CGI has generated a library of proprietary small molecule kinase inhibitors. The lead preclinical compound from this library targets spleen tyrosine kinase (Syk) and could have unique applications for the treatment of serious inflammatory diseases, including rheumatoid arthritis.
 
"The acquisition of CGI represents a unique opportunity to expand our research efforts in an interesting and promising area of drug discovery," said Norbert W. Bischofberger, PhD, Gilead's Executive Vice President, Research and Development and Chief Scientific Officer. "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."
 
"We are pleased to join the Gilead organization and look forward to partnering with the company to deliver on the promise of selective kinase inhibitors in our proprietary library of compounds," said Mark Velleca, MD, PhD, Founder and Senior Vice President of CGI. "We are confident that Gilead's knowledge and experience developing small molecule candidates for a range of clinical indications will be instrumental in helping to progress our compounds toward clinical development for diseases where tremendous unmet medical need exists."
 
About CGI Pharmaceuticals, Inc.
 
CGI Pharmaceuticals, Inc. is a private, development-stage pharmaceutical company that has leveraged its small molecule chemistry and kinase biology expertise to discover and develop an innovative pipeline of small molecule therapeutics for multiple oncology and immunology-based indications. CGI's investors include: MPM Capital, Flagship Ventures, Vector Fund Management, Coastview Capital, Vantage Point Venture Partners, Lilly BioVentures, RiverVest Venture Partners, CHL Medical Partners, Connecticut Innovations, Oxford Bioscience Partners, and Emerging Technology Partners. CGI's corporate headquarters and research laboratories are located in Branford, Connecticut. For additional information about the company, please visit: www.cgipharma.com.
 
 
 
 
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