Catalan pharmaceutical Grifols to buy 45% of California-based Alkahest for almost $40 million
Grifols, a global healthcare company based in Greater Barcelona, announced on Wednesday that it will acquire 45% of the California-based firm Alkahest for $37.5 million. The biopharmaceutical company headquartered in Redwood City (near San Francisco) was founded last year upon the work of Stanford University scientists, who proved that factors in the blood of young animals were able to restore mental capabilities in old animals. This discovery has triggered Grifols' interest, a world leader in blood-derivative products. The two partners will work together on the development of novel plasma-based products for the treatment of cognitive impairment associated with age and other diseases of the central nervous system, including Alzheimer´s.
Barcelona (ACN).- Grifols, a global healthcare company based in Greater Barcelona, announced on Wednesday that it has reached a definitive agreement whereby it will acquire 45% of the equity of the California-based firm Alkahest for $37.5 million. The biopharmaceutical company headquartered in Redwood City (near San Francisco) was founded last year upon the work of Stanford University scientists, who proved that factors in the blood of young animals were able to restore mental capabilities in old animals. This discovery has triggered Grifols' interest, a world leader in blood-derivative products. The two partners will work together on the development of novel plasma-based products for the treatment of cognitive impairment associated with age and other diseases of the central nervous system, including Alzheimer´s.
Under the agreement, Grifols will make a $37.5 million equity investment in the form of cash payment in exchange for 45% of Alkahest's shares. Furthermore, the Catalan multinational will also pay an additional $12.5 million to fund the development of plasma-based products to which it will have the worldwide rights. Alkahest will receive milestone payments and royalties on Grifols’ sales of these products. Moreover, the Barcelona-based global healthcare company will acquire two seats on Alkahest's Board of Directors and will collaborate with Alkahest researchers through the creation of a Scientific Joint Steering Committee.
According to Victor Grifols, President and CEO of Grifols: "the investment and collaboration with Alkahest will expand our research and development in fields that address one of the major unmet medical needs of this century and extend our footprint in one of the world's leading centres for biomedical innovation". "By working together we hope to translate our data from animal studies to humans", emphasised Stanford Professor and Alkahest co-founder Tony Wyss-Coray. Alkahest CEO and co-founder, Karoly Nikolich, stated they "are excited to be working with Grifols, a pioneer and leader in the development of plasmapheresis and plasma-based products".
Grifols' global sales were worth $4.4 billion in 2014
Grifols is a global healthcare company founded in 1940, and is currently present in more than 100 countries worldwide and headquartered in Barcelona. Grifols is a leader in plasma collection with a network of 150 plasma donor centres in the US, and a leading producer of plasma-derived biological medicines. In 2014, Grifols' sales exceeded €3.3 billion ($4.4 billion) employing almost 14,000 employees.