Deals
Gilead to Invest $725 Million in Galapagos After AbbVie Snub
- Galapagos eligible for $1.35 billion in additional payments
- Shares of Galapagos surged in Amsterdam to record high
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Gilead Sciences Inc. plans to pay $725 million to acquire a stake in Belgian drugmaker Galapagos NV and buy into an experimental drug that had been spurned by AbbVie Inc. less than three months ago.
Gilead will acquire about 15 percent of Galapagos for $425 million and pay a license fee of $300 million as part of an agreement to develop and sell filgotinib, a treatment for rheumatoid arthritis and other inflammatory diseases, according to a statement on Thursday. Galapagos is also eligible to get an additional $1.35 billion in payments for meeting certain milestones in developing the drug.