Gilead Sciences is a research-based biopharmaceutical company engaged in discovery, development and commercialisation of medication
Image: Gilead has made an equity investment of approximately $1.1bn (£900m) in Galapagos. Photo: Courtesy of Akshay93 from Pixabay.
US-based antiviral drugs manufacturer Gilead Sciences and Belgo-Dutch pharmaceutical research company Galapagos have closed their global research and development collaboration agreement signed in July 2019.
The companies announced that the agreement has been approved by the US Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and merger control approval from the Austrian Federal Competition Authority.
Gilead holds approximately 22% of share capital in Galapagos
Under the agreement terms, the closing of transaction Gilead would pay an upfront license fee payment of $3.95bn (£3.23bn) to Galapagos.
In addition, Gilead has made an equity investment of approximately $1.1bn (£900m) in Galapagos, by subscribing for new shares at a price of €140.59 (£127.7) per share, including issuance premium.
With the transaction, Gilead owns 13,589,686 ordinary shares of Galapagos, holding approximately 22% of the outstanding share capital in Galapagos.
Gilead chairman and chief executive officer Daniel O’Day said: “We are excited to close this unique agreement, which will generate both long-term strategic value and mutual, immediate benefits. The collaboration reflects Gilead’s intent to grow our innovation network through diverse and creative partnerships.”
Galapagos chief executive officer Onno van de Stolpe said: “This agreement is about maximizing innovation based on developing new mode of action medicines. With the capital provided by Gilead, we aim to progress innovation to patients.”
The total number of securities conferring voting rights is 61,652,086, which includes the total number of voting rights and all securities related to voting rights of the same category.
In addition, a total of 5,958,292 rights could subscribe to not yet issued securities conferring voting rights, which equals the total number of voting rights that may result from the exercise of these warrants, and Galapagos holds no other convertible bonds or shares without voting rights outstanding.
Gilead Sciences is a research-based biopharmaceutical company engaged in discovery, development and commercialisation of medication addressing unmet medical needs.
Galapagos is engaged in discovery and development of small molecule medicines with novel modes of action, which show promising patient results and currently in late-stage development in multiple diseases.