Gilead to buy CymaBay Therapeutics for $4.3 billion

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on Feb 12, 2024
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  • 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.

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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

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The 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.

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Here’s what Gilead’s CEO said today

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The Food and Drug Administration of the United States is expected to announce its verdict on seladelpar following a priority review in August of 2024.

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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.  

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