Gilead to take over Arresto

Arresto develops medicines that target enzymes involved in the synthesis of the extracellular matrix, which appear to play a role in the etiology of a variety of fibrotic diseases and cancer.

Under the terms of the agreement, Gilead will acquire Arresto for $225m and potential future payments based on achievement of certain sales levels.

Gilead anticipates that the deal would close in the first quarter of 2011, subject to satisfaction of certain closing conditions, and plans to finance the acquisition through available cash on hand.

Arresto president and CEO Peter Van Vlasselaer said that Gilead shares Arresto’s vision of bringing innovative new therapeutic options to patients with unmet medical needs.