Biotech Values

[DewDiligence]

GILD acquires Phenex Pharma’s NASH program for undisclosed up-front amount and contingent milestone payments of $470M:

http://finance.yahoo.com/news/gilead-sciences-announces-acquisition-phenex-133000712.html

Gilead Sciences, Inc. and Phenex Pharmaceuticals AG, a privately-held biotechnology company, today announced the signing of a definitive agreement under which Gilead will acquire Phenex’s Farnesoid X Receptor (FXR) program comprising small molecule FXR agonists for the treatment of liver diseases including nonalcoholic steatohepatitis (NASH). Under the terms of the agreement, Gilead will pay Phenex an upfront payment plus additional payments based upon achievement of certain development milestones that may potentially be worth up to $470 million.

GILD already has a NASH program with two phase-2 trials of Simtuzumab (https://www.clinicaltrials.gov/ct2/show/NCT01672879, https://www.clinicaltrials.gov/ct2/show/NCT01672866 ), so the Phenex deal announced today could be construed as showing a modest lack of confidence in Simtuzumab.

Note: Phenex (private) should not be confused with Pfenex (PFNX), which went public in Jul 2014 (#msg-104638871).