Print“Oncology remains an area of significant unmet medical need and our increased understanding of the genetic basis of cancer allows for the development of disease specific targeted therapies.”
Gilead Sciences will pay up to $600 million for Calistoga Pharmaceuticals and its mid-stage cancer drug, giving a boost to its oncology pipeline and possibly helping it move past a lackluster foray into cardiovascular therapies.
Calistoga’s cancer drug, CAL-101, is currently in mid-stage studies which are testing it as a treatment for refractory indolent non-Hodgkin's lymphoma—a type of the cancer with a median survival as long as 10 years—and chronic lymphocytic leukemia.
Under the terms of the agreement, Gilead will pay $375 million upfront and up to $225 million in potential milestones.
Gilead has worked hard to diversify its revenue-base, which is heavily dependent on HIV treatments. But the Foster City, California company’s first attempt at doing so, with an expansion into cardiovascular medicines, has yet to contribute the kind of revenue that will help it protect potential losses from competition to its HIV franchise, which includes market-leaders, such as Truvada and Atripla. Medicines from its cardiovascular-focused acquisitions of Myogen and CV Therapeutics contribute less than a quarter of Gilead’s revenue.
“Oncology remains an area of significant unmet medical need and our increased understanding of the genetic basis of cancer allows for the development of disease specific targeted therapies,” says Norbert Bischofberger, Gilead's EVP of research and development and its chief scientific officer. “Building on the recent acquisitions of CGI Pharmaceuticals and Arresto Biosciences, this acquisition serves to further broaden Gilead’s pipeline and expertise in the areas of oncology and inflammation.”
February 25, 2011
http://www.burrillreport.com/article-gilead_makes_600_million_play_for_calistoga.html
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