Gilead Sciences to buy Degussa's Raylo Chemicals for €115.2 million

New York, June 6 - Gilead Sciences, Inc. said it has agreed to acquire Raylo Chemicals Inc. and most of its assets from specialty chemicals company Degussa AG for €115.2 million.

Gilead also entered into long-term agreements with Degussa for the supply of raw materials and the manufacture of active pharmaceutical ingredients for Gilead products.

Closing is expected in the fourth quarter.

Raylo's operations include custom manufacturing of active pharmaceutical ingredients and advanced intermediates for the pharmaceutical and biopharmaceutical industries.

Gilead said it has worked with Raylo for 14 years, during which time Raylo has provided both development expertise and commercial product on a large scale for Gilead.

Gilead said it will use Raylo primarily for manufacturing development of investigational products, supplying active pharmaceutical ingredients for clinical research programs and contributing to new product launch supplies.

Gilead will assist Degussa in transitioning non-Gilead business to other sites. The Raylo name will remain an asset of Degussa.

"As our company continues to grow, so does our need for chemical and manufacturing expertise. This agreement underscores our commitment to advancing new therapies that address significant unmet medical needs by enabling us to rapidly provide adequate supply of Gilead's investigational products for preclinical and clinical evaluation," said John C. Martin, president and chief executive officer of Gilead Sciences, in a news release.

Gilead is a Foster City, Calif., biopharmaceutical company.

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