Dutch biotechnology company Galapagos has snapped up the UK-based drug discovery research services firm Inpharmatica in a transaction valued at 12.5 million euros.
The purchase price includes Inpharmatica’s ongoing business, which is
valued at 6.5 million euros, plus an additional estimated 6 million euros
in cash. There is a third component to the deal which sets out a potential
maximum pay-out from commercial milestones of 6.6 million euros.
Inpharmatica will become part of BioFocus DPI, Galapagos’ drug discovery
services business. However, as a consequence of the acquisition, the companies anticipate downsizing the UK firm’s management, sales and
administrative staff positions. Immediate synergies are expected to be
around 1.5 million euros a year.
Onno van de Stolpe, Galapagos chief executive, said that adding
Inpharmatica’s “proprietary target and compound selection tools to our
platform provides an even broader array of drug discovery solutions for
both our internal R&D and for our services business.” Inpharmatica also
brings major clients to the merger, notably Pfizer and Wyeth.
Galapagos said that the acquisition of Inpharmatica fits within its strategy of partnering with pharmaceutical and biotechnology companies in
‘turn-key’ drug discovery collaborations. It entered into such an alliance with GlaxoSmithKline in osteoarthritis in June 2006 and intends to complete two more such deals during the next three years.
Galapagos, which employs more than 360 staff and has facilities in the US,
the UK, Belgium, Switzerland and Germany, as well as in the Netherlands,
has maintained its revenue guidance for 2006 at 33-38 million euros.