Gilead Sciences signs definitive agreement to acquire CGI Pharmaceuticals

Gilead Sciences, Inc. (Nasdaq:GILD) 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.

“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”

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."