Gilead Sciences, Scholar Rock to Develop Therapies for Fibrotic Diseases -- Update
December 19 2018 - 10:10AM
Dow Jones News
By Colin Kellaher
Gilead Sciences Inc. (GILD) and Scholar Rock Holding Corp.
(SRRK) on Wednesday said they will work together to develop
therapies for fibrotic diseases in a deal that could be worth more
than $1.4 billion to Scholar Rock.
Gilead, a Forest City, Calif., biopharmaceutical company, said
it will make a $50 million upfront cash payment to Scholar Rock and
invest $30 million for a roughly 3.7% stake in Scholar Rock.
The companies said Scholar Rock will receive a $25 million
payment upon the successful completion of specific preclinical
studies, and the Cambridge, Mass., biopharmaceutical company will
be eligible for up to an additional $1.425 billion in potential
milestone payments.
Scholar Rock will sell 980,392 newly issued shares to Gilead at
$30.60 apiece, a 36% premium to Tuesday's closing price of $22.50.
Shares of Scholar Rock rose 7.8% to $24.26 in early trading on
Wednesday.
Gilead and Scholar Rock said they plan to develop highly
specific inhibitors of transforming growth factor beta, or
TGF<BETA>, activation for the treatment of fibrotic diseases.
The companies said Gilead has exclusive options to license
worldwide rights to product candidates that emerge from three
Scholar Rock TGF<BETA> programs.
The companies said TGF<BETA>-driven signaling is thought
to be a central regulator of fibrosis, a debilitating pathological
feature of many diseases that scars tissues and vital organs and is
a major cause of morbidity and mortality.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 19, 2018 09:55 ET (14:55 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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