FOSTER CITY, Calif. (AP) -- Biotechnology company Gilead Sciences Inc. said Friday it will acquire the privately held development-stage drug company CGI Pharmaceuticals for up to $120 million.
Most of the price will be paid upfront, with the remainder based on clinical development progress, Gilead said. The deal will be financed through cash on hand and is expected to close in the third quarter.
Afterward, CGI, which focuses on small-molecule chemistry and kinase biology, will become a wholly owned subsidiary of Gilead. CGI, formerly Cellular Genomics Inc., is based in Branford, Conn.
Gilead said CGI's lead preclinical compound could have applications for treating serious inflammatory diseases like rheumatoid arthritis.
Shares of Gilead rose 56 cents to $36.28 in Friday morning trading.