Gilead Sciences, a Nasdaq-listed drugs company, has agreed to buy US-based cancer-fighting peer Calistoga Pharmaceuticals for $375m in cash initially and up to $225m in performance fees.
Norbert Bischofberger, Gilead’s chief scientific officer, said: "Oncology remains an area of significant unmet medical need and our increased understanding of the genetic basis of cancer allows for the development of disease specific targeted therapies.
"Building on the recent acquisitions of CGI Pharmaceuticals and Arresto Biosciences, this acquisition serves to further broaden Gilead’s pipeline and expertise in the areas of oncology and inflammation."
In July, Calistoga raised $40m in its series C round, after $30m from its B round in 2009.
US investment firm Quogue Capital led the C round as a new investor, along with US venture capital firms Alta Partners, Frazier Healthcare, Three Arch Partners, Latterell Venture Partners and Amgen Ventures, the corporate venturing arm of biotechnology company Amgen set up in 2004.
Frazier founded Calistoga Pharmaceuticals in 2006 as a spin out of a drug development program from ICOS, a biotech company sold to Eli Lilly. The following year it raised $26.2m in its series A from Alta Partners, Frazier and Three Arch Partners as well as Amgen Ventures.
Lilly Ventures, the corporate venturing division of drugs company Eli Lilly, retains an equity stake in Calistoga after its spin out from ICOS.
Investment bank JP Morgan advised Calistoga on the sale with legal counsel from Wilson Sonsini Goodrich & Rosati.