Gilead to acquire CGI

FOSTER CITY, Calif. Gilead Sciences plans to acquire a development-stage pharmaceutical company for up to $120 million, Gilead said Friday.

Privately held CGI Pharmaceuticals has developed a library of drugs that have potential to treat inflammatory diseases such as rheumatoid arthritis. The majority of the $120 million will be an upfront payment, and the remaining will be based on clinical development progress, Gilead said.

“The acquisition of CGI represents a unique opportunity to expand our research efforts in an interesting and promising area of drug discovery,” Gilead EVP research and development and chief scientific officer Norbert Bischofberger said.