Grifols to acquire Alkahest to enhance discovery research and development to identify innovative therapies for age-related diseases based upon an understanding of the human plasma proteome
BARCELONA, Spain, and SAN CARLOS, Calif., Sept. 7, 2020 /PRNewswire/ -- Grifols (MCE: GRF, MCE: GRF.P, NASDAQ: GRFS), a leading global producer of plasma-derived medicines and a leader in the development of innovative diagnostic solutions, today announced it has entered into a transaction to acquire the remaining equity of Alkahest, Inc. in exchange for a total price of $146 million, on a debt-free basis. No additional financing will be required.
The closing of the transaction is subject to the approval by the relevant antitrust authorities, and is expected to close in early 2021.
The Silicon Valley-based biotechnology company was founded upon research into the therapeutic use of plasma proteins in combating diseases associated with aging as identified in the Stanford University laboratory of Tony Wyss-Coray, professor of Neurology at Stanford and co-founder and board member of Alkahest.
In addition to the clinical development of specific plasma fractions and protein inhibitors, Alkahest is focused on developing a complete understanding of the human plasma proteome. This unique proteomic platform of targets will help Grifols and Alkahest to unlock new therapeutics and diagnostics, develop new plasma proteins, new indications for currently licensed plasma proteins, biomarkers for diagnostics, recombinant proteins and antibodies as well as small-molecule drugs.
Understanding the plasma proteome is the key to Alkahest's comprehensive discovery and development platform delivering transformational therapeutics. Alkahest, as a wholly owned subsidiary within the Grifols innovation office (GIANT), will focus on proteins with biological impact that change with age. Thus far, more than 8,000 separate proteins have been identified by Alkahest and using advanced techniques of molecular analysis at the cellular level, an array of new products are expected to enter Grifols' discovery and development pipeline and bring new therapeutic medicines to market.
"We saw the promise of Alkahest's understanding of aging when we made our first investment and entered into a collaboration agreement with them five years ago," said Víctor Grífols, co-CEO of Grifols. "Now we see a wealth of plasma-derived and non-plasma therapeutic candidates identified by Alkahest that can significantly support the unmet needs of many diseases associated with aging."
Karoly Nikolich, CEO of Alkahest, said, "We are excited to join forces with Grifols, an industry leader in plasma-derived medicines, to realize our shared vision and mission of delivering innovative medicines for age-related diseases on an ambitious scale."
Dr. Wyss-Coray added: "It is most gratifying to see some of our initial academic discoveries on the therapeutic power of plasma proteins being translated into new treatments for human diseases through the synergies between Grifols and Alkahest. I am thrilled to continue and expand our productive partnership and am optimistic for continued clinical success."
Grifols was supported in this transaction by its advisors, Osborne Clarke and Proskauer. Alkahest was supported in this transaction by its advisor, Cooley.
Grifols is a global healthcare company founded in Barcelona in 1909 committed to improving the health and well-being of people around the world. Its four divisions – Bioscience, Diagnostic, Hospital and Bio Supplies – develop, produce and market innovative solutions and services that are sold in more than 100 countries.
Pioneers in the plasma industry, Grifols operates a growing network of donation centers worldwide. It transforms collected plasma into essential medicines to treat rare, chronic and, at times, life-threatening conditions. As a recognized leader in transfusion medicine, Grifols also offers a comprehensive portfolio of solutions designed to enhance safety from donation to transfusion. In addition, the company supplies tools, information and services that enable hospitals, pharmacies and healthcare professionals to efficiently deliver expert medical care.
Grifols, with more than 24,000 employees in 30 countries, is committed to a sustainable business model that sets the standard for continuous innovation, quality, safety and ethical leadership.
In 2019, Grifols' economic impact in its core countries of operation was 8.5 billion euros. The company also generated 148,000 jobs, including indirect and induced.
The company's class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE:GRF). Grifols non-voting class B shares are listed on the Mercado Continuo (MCE:GRF.P) and on the U.S. NASDAQ through ADRs (NASDAQ:GRFS).
For more information, please visit www.grifols.com
Alkahest is a clinical stage biopharmaceutical company dedicated to discovering and developing treatments for neurodegenerative and age-related diseases with transformative therapies targeting the aging plasma proteome. The Alkahest pipeline includes multiple therapeutic candidates ranging from selected plasma fractions to protein-targeted interventions which aim to slow the detrimental biological processes of aging. Alkahest is developing novel plasma-based therapies in collaboration with Grifols, a global healthcare company and leading producer of plasma therapies.
For further information see www.alkahest.com or on Twitter @AlkahestInc.
The facts and figures contained in this report that do not refer to historical data are "future projections and assumptions". Words and expressions such as "believe", "hope", "anticipate", "predict", "expect", "intend", "should", "will seek to achieve", "it is estimated", "future" and similar expressions, in so far as they relate to the Grifols group, are used to identify future projections and assumptions. These expressions reflect the assumptions, hypotheses, expectations and predictions of the management team at the time of writing this report, and these are subject to a number of factors that mean that the actual results may be materially different. The future results of the Grifols group could be affected by events relating to its own activities, such as a shortage of supplies of raw materials for the manufacture of its products, the appearance of competitor products on the market, or changes to the regulatory framework of the markets in which it operates, among others. At the date of compiling this report, the Grifols group has adopted the necessary measures to mitigate the potential impact of these events. Grifols, S.A. does not accept any obligation to publicly report, revise or update future projections or assumptions to adapt them to events or circumstances subsequent to the date of writing this report, except where expressly required by the applicable legislation. This document does not constitute an offer or invitation to buy or subscribe shares in accordance with the provisions of the following Spanish legislation: Royal Legislative Decree 4/2015, of 23 October, approving recast text of Securities Market Law; Royal Decree Law 5/2005, of 11 March and/or Royal Decree 1310/2005, of 4 November, and any regulations developing this legislation. In addition, this document does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. The information included in this document has not been verified nor reviewed by the external auditors of the Grifols group.
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