NEW YORK (GenomeWeb News) — A missed milestone by Inpharmatica has prompted Galapagos to cut around €7 million from the value of its acquisition of the company, Galapagos said today.
The company has already issued 613,000 new shares to former Inpharmatica stockholders, which Galapagos had agreed to acquire last December for as much as €19 million ($25.4 million) in stock.
Under that deal, Galapagos was to grant Inpharmatica shareholders as many as 2.2 million shares priced at €8.82 apiece based on certain milestones, cash on hand, and worth as a business. Galapagos issued 623,000 shares at the time of the agreement.
Today, Galapagos said that Inpharmatica failed to meet one of these milestones, resulting in a loss of the 815,000 shares.
Galapagos said it will issue a maximum of 113,000 more shares in May to complete the acquisition, bringing the total exchange to around €12 million.
The company also separately issued a total of 14,800 shares as part of warrants to Galapagos employees and its Dutch affiliate.