Gilead Sciences will pay approximately $1.5 billion in cash as an upfront payment to investors of the privately held company Ouro.
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In addition, Gilead Sciences will pay at least $500 million more if certain clinical trial milestones are met. This deal structure highlights the trend of high valuations for innovative therapies in the biopharmaceutical industry, and the model of tying payments closely to R&D progress has become a new feature of current M&A transactions.
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