(Reuters) – Gilead Sciences Inc (GILD.O) will invest $5.1 billion to raise its stake in Galapagos NV (GLPG.AS) and partner with the Belgian-Dutch biotech firm to develop and commercialize its treatments for a ten-year period, the companies said on Sunday.
The investment in Galapagos, which comes nearly four years after the firms partnered to develop a drug targeting inflammatory diseases, includes an upfront payment of $3.95 billion and a $1.1 billion equity investment from Gilead.
“Gilead gains exclusive access to all current and future compounds in Galapagos’ rich pipeline while Galapagos is able to expand its research activities and build commercial infrastructure,” Gilead Chief Executive Officer Daniel O’Day said in a statement.
The U.S. drugmaker will pay 140.59 euros ($158.43) per new share in Galapagos to increase its stake to 22% from 12.3%. That represents a premium of nearly 10% to the close of Galapagos shares on Friday.
Galapagos said it would also seek…
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