Grifols (MCE: GRF, MCE: GRF.P and NASDAQ: GRFS), a global healthcare company and leading producer of plasma therapies, and Alkahest, a Redwood City, California based, privately held biopharmaceutical company founded upon the pioneering work of Dr. Tony Wyss-Coray and other leading scientists at Stanford University, today announced that they have signed definitive agreements whereby Grifols will make a major equity investment in Alkahest, and the companies will work together to develop novel plasma-based products for the treatment of cognitive decline in aging and disorders of the central nervous system (CNS), including Alzheimer's.
Grifols will make a $37.5 million equity investment in the form of a cash payment in exchange for 45% of Alkahest's shares following the closing of the transaction. In addition Grifols will provide a further payment of $12.5 million and fund the development of plasma-based products, which may be commercialized by Grifols throughout the world. Alkahest will receive milestone payments and royalties on sales of such products by Grifols.
Grifols will have two seats on Alkahest's Board of Directors and will collaborate with Alkahest researchers through the creation of a Scientific Joint Steering Committee.
The transaction is part of Grifols' commitment with the research and development of therapeutic alternatives designed to contribute to both scientific and social development. In addition, it is aligned within Grifols' strategy of complementing its range of existing plasma protein therapies and diagnostic products to treat and diagnose serious diseases and to extend the quality of human life.
According to Victor Grifols, President and CEO of Grifols: "The investment and collaboration with Alkahest will expand our research and development in fields that address one of the major unmet medical need of this century and extend our footprint in one of the world's leading centers for biomedical innovation. Alkahest's research activities are an extension of Grifols' long commitment to identify and develop significant therapies from Human Plasma for cognitive and other CNS disorders".
"We are excited to be working with Grifols, a pioneer and leader in the development of plasmapheresis and plasma-based products," said Alkahest CEO and Co-founder, Karoly Nikolich, PhD. "By working together, we hope to translate our data from animal studies to humans" said Stanford Professor and Alkahest Co-founder Tony Wyss-Coray, PhD. "If we are successful, it could mean new therapeutic approaches for treating numerous diseases associated with aging including neural dysfunction and dementias such as Alzheimer's Disease".
Grifols was advised on the transaction by Osborne Clarke in Spain.
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