NEW YORK (GenomeWeb News) - Galapagos said today that it has entered an agreement to buy drug-discovery firm ProSkelia for €12.5 million ($16.4 million) in stock.
Galapagos also said it has raised €31 million ($40.7 million) in financing through the private placement of new shares to institutional investors in Europe and the US.
ProSkelia, a subsidiary of the UK-based company ProStrakan Group, specializes in bone diseases. It was originally a spin-out of Aventis’ bone disease group and was acquired by the Strakan in 2004 to form ProStrakan.
Galapagos will acquire ProSkelia’s bone disease R&D capacities as well as three preclinical products for bone disease and one product for muscle atrophy and weight loss. Galapagos said the acquisition will contribute to its goal of having “multiple clinical programs in bone and joint disease in 2008.”
Galapagos said it issued new shares for the €12.5 million payout, and may pay ProStrakan as much as €14.5 million in earn-out payments from income it may receive from acquired preclinical programs.
Galapagos CEO Onno van de Stolpe said the acquisition and new capital will allow the company to “bring our bone and joint programs into the clinic in 2008 and 2009.”
Galapagos earlier this month bought drug database company Inpharmatica for €19.1 million, and in July it acquired the drug discovery operations from Discovery Partners International for €4.25 million.