BRUSSELS, March 13 Belgian biotechnology group
Galapagos said on Thursday it had agreed to sell its
drug discovery service businesses to Charles River Laboratories
International for up to 134 million euros ($186.3
Galapagos said in a statement that it would be selling
BioFocus and Argenta, which provide drug research services for
the likes of Boehringer Ingelheim and Genentech.
Charles River, which specialises in supplying laboratory
services to the pharmaceutical industry, will pay Galapagos 129
million euros, with a further 5 million euros dependent on
reaching a revenue target 12 months after the deal is closed.
Galapagos said the purchase price represented a multiple of
about two times 2013 sales and 12 times adjusted core profit
The Belgian company said that with the sale, expected to be
closed early in the second quarter, it had revised its 2014
It now expects full-year revenue of 125 million euros, from
the 180 million euros it forecast last week, and year-end cash
of 170 million euros.
Galapagos will retain three research and development sites
in Belgium, France and the Netherlands, as well as its Fidelta,
its fee-for-service operation based in Zagreb, Croatia.
It will focus on its own drug pipeline, including candidate
treatments for rheumatoid arthritis, lupus and ulcerative
colitis, most of them in alliance with big pharma companies such
as GlaxoSmithKline, AbbVie and Janssen.