NEW YORK (GenomeWeb News) — Galapagos today said it plans to acquire Inpharmatica, a UK-based drug discovery database company in a stock deal that potentially worth €19.1 million ($25.4 million).
Galapagos said it estimates that Inpharmatica’s ongoing business is worth €6.5 million, the company has €6 million for the cash, and has a potential to earn around €6.6 million in milestones.
Inpharmatica will become part of Galapagos’ drug-discovery branch, BioFocus DPI, and will contribute its Admensa chemical compound screening and Chematica chemoinformatics services to expand client services.
Galapagos CEO Onno van de Stolpe said the deal “will position our company further for additional turn-key deals ranging from target discovery all the way to clinical proof of concept.”
Galapagos also said it expects to lay-off some of Inpharmatica’s management, sales, and administrative staff.
Under the terms of the agreement, Galapagos will issue as many as 2.2 million of its shares at €8.82 apiece — or around €19.1 million — which was the trading price over the 30 days before Dec. 5. Galapagos said it will issue these shares “assuming that all three components” — milestones, cash on hand, and Inpharmatica’s worth as an ongoing business — “are fully delivered.”
To facilitate the deal, Galapagos said it will apply for a listing for the new Galapagos shares on Euronext Brussels and Euronext Amsterdam.