Gilead to acquire Genentech's OCP facility, other process development assets

Gilead SciencesAug 9 2011

Gilead Sciences, Inc. (Nasdaq: GILD) today announced that the company has signed a definitive agreement under which Gilead will purchase a clinical biologics manufacturing facility and certain process development assets located in Oceanside, California from Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY). The agreement covers Genentech's Oceanside Clinical Plant (OCP), a 70,000 square-foot facility at 4049 Avenida de la Plata, as well as certain other process development assets. Gilead will hire certain of Genentech's biologics manufacturing specialists and process development scientists familiar with the facilities to assist with Gilead's operations. Genentech will continue to operate and maintain ownership of the Oceanside Commercial Manufacturing (OCN) facilities at One Antibody Way and other adjacent land.

The companies expect the transaction to close in the third quarter of this year, subject to satisfaction of certain conditions. As part of the acquisition, approximately 55 current Genentech clinical manufacturing and process development employees will be offered employment at Gilead. All employees joining Gilead from Genentech will be working in the OCP facility.

The OCP facility is currently designed and equipped to produce biologic compounds for toxicological, Phase 1 and Phase 2 clinical studies. Initially, Gilead will use the facility for the process development and manufacture of GS 6624 (formerly AB0024), an investigational monoclonal antibody candidate in development for treatment of certain cancers and for fibrotic diseases, and another antibody which is currently in preclinical testing.

"This acquisition represents a unique opportunity to establish Gilead's biologics process research and manufacturing capability while bringing on a team of employees with strong expertise in biologics manufacturing and process development. This will enable us to accelerate internal biologics research and development programs and take advantage of external opportunities in the future," said Norbert W. Bischofberger, PhD, Gilead's Executive Vice President, Research and Development and Chief Scientific Officer. "We look forward to welcoming our colleagues in Oceanside, as we seek to advance development of GS 6624 and other novel therapies for life-threatening diseases with unmet medical need."