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Galapagos to Buy DPI s Drug-Discovery Service Arm for $5.4M

NEW YORK, June 13 (GenomeWeb News) - Galapagos will acquire the entire drug-discovery service operation of Discovery Partners International for €4.25 million ($5.4 million) in cash, the companies said today.

Under the terms of the agreement, Galapagos will acquire all of the outstanding capital stock or equity interests of DPI subsidiaries Discovery Partners International, ChemRx Advanced Technologies, Xenometrix, and Discovery Partners International, as well as certain contracts connection with the transaction.

Galapagos, headquartered in Mechelen, Belgium, will inherit DPI's four service sites located in San Diegoand South San Francisco, Calif., Basel,Switzerland, and Heidelberg, Germany; as well as DPI's Japanese sales office in Tokyo.

The companies anticipate layoffs of general and administrative staff in the San Diegofacility, but expect all four of the DPI services locations to remain fully operational. There are approximately 100 people employed at the acquired sites, which will bring the total Galapagos headcount to more than 320, the companies said.

 

Galapagos also said that it will merge the service sites into BioFocus, its drug-discovery services division, and, as a result, will change the name of the division to BioFocus DPI.

 

Galapagos anticipates that DPI operations will contribute more than €8 million in external revenues to BioFocus DPI for the six months remaining in 2006. Major 2006 customers for these operations include Actelion, Allergan, Biovitrum, GlaxoSmithKline, Mitsubishi Pharma, thr US National Institutes of Health, Novartis, and Ono, the companies said.

 

The transaction is subject to customary closing conditions and is expected to close in July, the companies said.

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