Summary
Gilead Sciences, Inc. (GILD) filed an 8-K on December 22, 2010, detailing two significant corporate actions. The company's Irish subsidiary entered into a multi-year manufacturing supply agreement for bulk tenofovir disoproxil fumarate, the active ingredient in key Gilead products like Viread, Truvada, and Atripla. This agreement, spanning 2011 through 2013, ensures the supply of a crucial component for Gilead's established antiviral therapies. Furthermore, Gilead announced an Agreement and Plan of Merger to acquire Arresto Biosciences, Inc., a privately held, development-stage biotechnology company. The acquisition is valued at $225 million in cash, with potential future milestone payments tied to sales performance. This strategic move suggests Gilead is expanding its pipeline and investing in future growth opportunities, with the transaction expected to close in the first quarter of 2011.
Key Highlights
- 1Gilead Sciences, Inc. entered into a manufacturing supply agreement with Ampac Fine Chemicals LLC for bulk tenofovir disoproxil fumarate for the years 2011-2013.
- 2The supply agreement ensures the availability of the active pharmaceutical ingredient for key Gilead drugs: Viread, Truvada, and Atripla.
- 3Gilead announced an Agreement and Plan of Merger to acquire development-stage biotechnology company Arresto Biosciences, Inc.
- 4The acquisition of Arresto Biosciences is valued at $225 million in cash.
- 5The deal includes potential future payments to Arresto based on achieving certain sales levels.
- 6Gilead will assume Arresto's outstanding stock options, converting them into options for Gilead common stock.
- 7The acquisition is expected to close in the first quarter of 2011 and does not require Gilead shareholder approval.