GlaxoSmithKline Plc (NYSE:GSK) (GSK) has recently entered into an agreement with Oncodesignthat will enable the latter to acquire its Essone-based Francois Hyafil Research Center.
Under the deal, GSK was promised €35M in four-year funding, which will be used by Oncodesign to facilitate a smooth transition. Nearly 60 employees based at the said facility will also be absorbed into Oncodesign from GSK. The agreement is expected to be in effect on or before December 1.
Francois Hyafil Research Center
The 29-year-old Francois Hyafil Research Center used to be a Flexible Discovery Unit that had played a significant role in the drug discovery efforts of GSK. It boasts in vivo pharmacology, medicinal chemistry, and pharmacokinetics capabilities. The decision of GSK to sell one of its most important facilities stems from its efforts to streamline its research and development (R&D) organizational operations. To be able to carry out its prospects better, the pharmaceutical giant has consolidated its R&D operations into two main development centers: 1) Upper Providence in the US; and 2) Stevenage in the UK.
What Awaits the Facility
“This strategic acquisition of GSK’s research center is a key next step for Oncodesign and without any dilutive impact for our shareholders. It will allow Oncodesign to boost its Drug Discovery programs and Experimentation businesses and to position itself as a leading player in the business of Full Drug Discovery Services, a new market for Oncodesign,” explained Philippe Genne, Oncodesign Chairman and CEO.
Dave Allen, GSK Pharmaceuticals Senior Vice President (SVP) of R&D, has said that the acquisition of Francois Hyafil Research Center along with the integration of its staff will continue to advance medical research, aiming to improve patients’ quality of life. He has expressed his confidence in the ability of the staff to become valuable to Oncodesign as well.
GSK ended Wednesday’s session at $43.67. Prior to this, the stock has reached a high of $43.78 and a low of $43.30. Meanwhile, Oncodesign has touched an intraday high of €18.78 and an intraday low of €17.71 before ending at €18.48.