UPDATE 1-Galapagos acquires Zagreb R&D centre from GSK

Related Topics

Wed Sep 8, 2010 1:54am EDT

* Galapagos to provide R&D services to GSK under 3-yr deal

* Galapagos remains confident of full year guidance

AMSTERDAM, Sept 8 (Reuters) - Belgian biotech firm Galapagos (GLPG.BR) said on Wednesday it had agreed with GlaxoSmithKline (GSK.L) to acquire a state-of-the art research centre in Zagreb, Croatia.

The arrangement, which is subject to closing conditions and is expected to be effective as of Sept. 9, provides for ongoing employment of the staff at the centre and will provide additional capacity for Galapagos' growing R&D requirements.

Terms of the deal include the acquisition of the research centre along with the transfer of approximately 130 staff.

In addition, Galapagos will provide R&D services to GSK under a three year fee-for-service contract to the value of 14 million euros ($17.84 million).

"We remain confident of our full year guidance for revenues of at least 135 million euros with positive operating income and cash flow, and a positive net result in 2010," Galapagos chief financial officer Guillaume Jetten said in a statement. ($1=.7846 Euro) (Reporting by Marcel Michelson; Editing by Hans Peters)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.