Grifols Agrees To Make A Major Equity Investment In Alkahest - Quick Facts

(RTTNews) - Grifols (GRFS), a producer of plasma therapies, and Alkahest, a privately-held biopharmaceutical company, said they have signed definitive agreements for Grifols to make a major equity investment in Alkahest.

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, including Alzheimer's.

Grifols will make a $37.5 million equity investment in the form of a cash payment in exchange for 45 percent of Alkahest's shares after 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 globally. 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.