CGI Pharma to be sold to Calif. firm for $120M
CGI Pharmaceuticals Inc., a small-molecule-focused biotech in Branford, Conn., has signed a deal to be acquired by Gilead Sciences Inc. for up to $120 million. The buyout is planned to close in the third quarter of 2010, when CGI will operate as a subsidiary of Gilead.
The $120 million acquisition fee consists mainly of upfront payments, with the remaining pay coming through clinical development milestones.
Founded in 2000 through research at Yale University, CGI Pharmaceuticals develops small molecule kinase inhibitors that could treat rheumatoid arthritis and other inflammatory diseases. The company is backed by MPM Capital, Flagship Ventures, Vector Fund Management, Coastview Capital, Vantage Point Venture Partners, Lilly BioVentures, RiverVest Venture Partners, CHL Medical Partners, Connecticut Innovations, Oxford Bioscience Partners, and Emerging Technology Partners.
Gilead Sciences (Nasdaq: GILD), located in Foster City, Calif., develops “innovative therapeutics in areas of unmet medical need,” according to a news release today from the two companies.