Gilead Sciences gets rights to IPF and lung cancer drug with $225 million acquisition of Arresto Biosciences

USA-based Gilead Sciences (Nasdaq: GILD) has signed a definitive agreement to acquire privately-held US biotech firm Arresto Biosciences. Under the terms of the deal, Gilead will acquire Arresto for $225 million and potential future payments based on achievement of certain sales levels. Gilead expects the deal to close in the first quarter of 2011, subject to satisfaction of certain closing conditions, and plans to finance the acquisition through available cash on hand.

Arresto develops medicines that target enzymes involved in the synthesis of the extracellular matrix, which appear to play a role in the etiology of a variety of fibrotic diseases and cancer. The company’s lead product is AB0024, a humanized monoclonal antibody (MAb) targeting the human lysyl oxidase-like-2 (LOXL2) protein. The company recently initiated a Phase I study evaluating AB0024 in patients with idiopathic pulmonary fibrosis (IPF). A Phase I study of AB0024 in patients with advanced solid tumors is also ongoing.

Complements Gilead’s ambrisentan