Gilead To Acquire CGI Pharma

Gilead Sciences and CGI Pharmaceuticals, Inc. have entered into a definitive agreement under which Gilead will acquire CGI for as much as $120 million—the majority as an upfront payment and the rest based on clinical development progress. CGI will continue operations in Branford as a wholly-owned subsidiary of Gilead. The deal is expected to close in 3Q10.

CGI has generated a library of small molecule kinase inhibitors. Its lead preclinical compound targets spleen tyrosine kinase (Syk), which has the potential to treat 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, Ph.D., Gilead’s executive vice president, R&D 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.”