Gilead Sciences announces Calistoga Pharmaceuticals takeover

Gilead Sciences has announced that it will be acquiring Calistoga Pharmaceuticals in a deal worth $375 million (231.2 million pounds).

The transaction, which will close in the second quarter of 2011, will allow Gilead to take control of a company which specialises in the development of treatments for cancer and inflammatory diseases.

Its developmental drugs function by selectively targeting isoforms of phosphoinositide-3 kinase, with its lead compound CAL-101 currently undergoing phase II studies as a non-Hodgkin's lymphoma therapy.

The agreement will also see Calistoga receive additional payments of up to $225 million depending on the achievement of certain milestones.

Dr Norbert Bischofberger, Gilead's executive vice-president for research and development and chief scientific officer, said: "This acquisition serves to further broaden Gilead's pipeline and expertise in the areas of oncology and inflammation."

Last month, the firm published its financial report for 2010, a year which saw its annual product sales rise by 14 percent to $7.39 billion.