Gilead Sciences will acquire Arresto Biosciences for $225 million and potential future payments based on achievement of certain sales levels. Gilead anticipates that the deal will close in the first quarter of 2011, subject to satisfaction of certain closing conditions, and plans to finance the acquisition through available cash on hand.
Arresto develops medicines that target enzymes involved in the synthesis of the extracellular matrix, which appear to play a role in the etiology of a variety of fibrotic diseases and cancer. The company’s lead product is AB0024, a humanized mAb targeting the human lysyl oxidase-like-2 (LOXL2) protein. The company recently initiated a Phase I study evaluating AB0024 in patients with idiopathic pulmonary fibrosis (IPF). A Phase I study of AB0024 in patients with advanced solid tumors is also ongoing.
“Arresto’s research and development expertise is well aligned with Gilead’s areas of focus including our ongoing clinical program for ambrisentan in IPF,” says Norbert W. Bischofberger, Ph.D., Gilead’s evp, R&D and CSO. “We look forward to working with the team from Arresto to advance the development of novel therapies for serious fibrotic diseases and explore their potential for the treatment of tumors.”