Gilead Sciences to acquire CGI Pharmaceuticals
But will cut 150 research jobs in Durham, NC
Gilead Sciences, a privately owned, development-stage US-based pharmaceutical company, is to acquire CGI Pharmaceuticals for up to US$120m.
Gilead anticipates that the CGI deal will close in the third quarter. After closing, CGI will continue operations in Branford, US as a wholly owned subsidiary of Gilead.
CGI has generated a library of proprietary small molecule kinase inhibitors. Its lead compound could have applications for the treatment of 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 Bischofberger, executive vice president of Gilead.
In a separate announcement, the company said it would cut about 150 jobs at its research and development operation in Durham, NC, US as it consolidates its r&d work on experimental treatments for hepatitis B and C at its headquarters in Foster City, California. The work was previously divided between the two facilities.
Research at Durham will be phased out through to the end of the year and around 30 employees will be offered jobs in California.
Gilead has about 4,000 employees, and its drugs for AIDS and other diseases generated US$6.47bn in revenue last year.