BioCentury
ARTICLE | Financial News

Galapagos raises EUR 31M, to acquire ProSkelia

December 27, 2006 2:53 AM UTC

Galapagos (Euronext:GLPG; LSE:GLPG) raised EUR 31 million ($40.5 million) through a private placement with U.S. and European investors. Kempen; Fortis; and Whitaker Securities were joint lead managers. GLPG also said it agreed to acquire ProSkelia, the French drug discovery subsidiary of ProStrakan (LSE:PSK), for EUR 12.5 million ($16.4 million) in stock.

The deal would give GLPG three preclinical products in osteoporosis and bone metastasis as well as a preclinical selective androgen receptor modulator (SARM) to treat cachexia. GLPG also would receive an option to license exclusive worldwide rights to estradiol glucoside (E2G), which has completed a Phase IIa study to treat menopausal symptoms. PSK is eligible for EUR 14.5 million ($19.1 million) in additional payments. GLPG also would assume ProSkelia's ongoing R&D partnerships with Amgen (AMGN), Genentech (DNA) and Novartis (NVS; SWX:NOVN). ...