Gilead to buy CymaBay Therapeutics for $4.3 billion
- Buying CymaBay will help Gilead expand its liver portfolio.
- The deal values each share of CymaBay Therapeutics at $32.50.
- CymaBay stock is up over 25% following the news on Monday.
CymaBay Therapeutics Inc (NASDAQ: CBAY) opened more than 25% up this morning after Gilead Sciences Inc (NASDAQ: GILD) said it will buy the biopharmaceutical company for $4.3 billion.
Details of Gilead-CymaBay agreement
Copy link to sectionThe said deal values CymaBay at $32.50 per share.
Lead asset of this Newark-headquartered firm is “seladelpar” – a candidate drug for primary biliary cholangitis. The acquisition, therefore, will help Gilead Sciences expand its liver portfolio.
The news arrives only days after the pharmaceutical behemoth reported its per-share earnings for the fourth quarter that came in shy of Street estimates.
Also on Monday, analysts at Oppenheimer lowered their price target on $GILD that currently pays a dividend yield of 4.18% to $105. But that still represents about a 45% upside from here.
Here’s what Gilead’s CEO said today
Copy link to sectionThe Food and Drug Administration of the United States is expected to announce its verdict on seladelpar following a priority review in August of 2024.
Gilead expects its deal with CymaBay Therapeutics to close in the first quarter of 2024 provided it satisfies the customary closing conditions including regulatory approval. Daniel O’Day – its chief executive said in a press release today:
We’re looking forward to advancing seladelpar by leveraging Gilead’s long-standing expertise in treating and curing liver diseases. We have the potential to address unmet need for people living with PBC.
$GILD has been under pressure lately also because its Trodelvy disappointed in a later stage cancer trial in January as Invezz reported here.
