Date: 2015-03-04
Type of information: Company acquisition
Acquired company: 45% of the equity of Alkahest (USA - CA)
Acquiring company: Grifols (Spain)
Amount: $50 million
Terms: * On March 4, 2015, Grifols, a global healthcare company and leading producer of plasma therapies, and Alkahest, a Redwood City, California based, privately held biopharmaceutical company founded upon the pioneering work of Dr. Tony Wyss-Coray and other leading scientists at Stanford University, announced that they have signed definitive agreements whereby Grifols will make a major equity investment in Alkahest, and the companies will work together to develop novel plasma-based products for the treatment of cognitive decline in aging and disorders of the central nervous system (CNS), including Alzheimer´s. Grifols will make a $37.5 million equity investment in the form of a cash payment in exchange for 45% of Alkahest\'s shares following the closing of the transaction. In addition Grifols will provide a further payment of $12.5 million and fund the development of plasma-based products, which may be
commercialized by Grifols throughout the world. Alkahest will receive milestone payments and royalties on sales of such products by Grifols. Grifols will have two seats on Alkahest’s Board of Directors and will collaborate with Alkahest researchers through the creation of a Scientific Joint Steering Committee. The transaction is part of Grifols’ commitment with the research and development of therapeutic alternatives designed to contribute to both scientific and social development. In addition, it is aligned within Grifols\' strategy of complementing its range of existing plasma protein therapies and diagnostic products to treat and diagnose serious diseases and to extend the quality of human life.
Details: Alkahest was established in 2014 by Drs. Tony Wyss-Coray and Karoly Nikolich to further develop and commercialize the pioneering work of Dr. Wyss-Coray, and other leading scientists at Stanford University who demonstrated that factors in the blood of young animals were able to restore mental capabilities in old animals. In their study published online May 4, 2014 in Nature Medicine the scientists characterized important molecular, neuroanatomical and neurophysiological changes in the brains of old mice that shared the blood of young mice. Alkahest is now conducting clinical studies to determine if this promising data in animals can be translated to humans. In addition to Grifols, Alkahest\'s investors include Bioville Investment Limited, Full House Investment Limited and Stanford University.
Related: CNS diseases Neurodegenerative diseases
