Gilead Sciences has announced its acquisition of CymaBay Therapeutics for a staggering $4.3 billion. The deal not only marks a significant investment for Gilead but also grants it access to CymaBay’s pioneering liver disease treatment, propelling the company into a potentially lucrative market.
Shares of CymaBay soared by 24.6% to reach an all-time high of $32.01 during morning trading on Monday, outstripping the offered price of $32.50 per share. Meanwhile, Gilead’s stocks also experienced a modest uptick of 1.1% to $74.49 following the announcement. The acquisition positions Gilead to acquire CymaBay’s leading experimental drug, seladelpar, which analysts estimate could generate sales upwards of $1.9 billion by 2029, pending approval.
“This transaction helps (Gilead) continue to paint the story for growth beyond their core HIV business,” remarked BMO Capital Markets analyst Evan Seigerman, underlining the strategic importance of the move for Gilead’s future expansion.
Read more: Gilead And Teva’s HIV Antitrust Trial Begins
The focus of the acquisition lies in seladelpar’s potential to address primary biliary cholangitis, a chronic inflammatory liver disease, for which the U.S. Food and Drug Administration (FDA) is currently reviewing its suitability as a treatment. A decision from the FDA is anticipated by August 14th. This acquisition comes at a critical juncture for Gilead, as the company grapples with recent setbacks in its clinical trials, reported Reuters.
The setbacks include the failure of Gilead’s experimental oral COVID antiviral treatment, obeldesivir, to meet its primary endpoint in trials involving non-hospitalized patients. Additionally, the cancer drug Trodelvy, intended to enhance survival rates among previously treated patients with a specific type of lung cancer, did not demonstrate significant efficacy.
Adding to its challenges, the U.S. health regulator recently placed a hold on trials assessing Gilead’s blood cancer drug, citing an increased risk of patient mortality observed in certain studies.
The acquisition of CymaBay Therapeutics underscores Gilead’s commitment to diversifying its product offerings and expanding its presence in the pharmaceutical market.
Source: Reuters
Featured News
Justice Department Moves to End NCAA Transfer Rule
May 30, 2024 by
CPI
Kenya’s Competition Authority Proposes Tougher Regulations on Big Tech
May 30, 2024 by
CPI
KKR Secures EU Antitrust Approval for $24 Billion Acquisition of Telecom Italia’s Fixed-Line Network
May 30, 2024 by
CPI
European Court Sides with Tech Giants in Italian Regulatory Dispute
May 30, 2024 by
CPI
US Steel and Nippon Steel Secure International Approvals for $14.9B Merger
May 30, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Healthcare Antitrust
May 31, 2024 by
CPI
AI and Antitrust Considerations in U.S. Health Care
May 31, 2024 by
CPI
Uncertainty in the Bottom Line: New Antitrust Scrutiny and Enforcement in Private Equity Transactions
May 31, 2024 by
CPI
Effecting M&A Diligence When Competitors Are Involved
May 31, 2024 by
CPI
AI, Pharmaceutical Sector, and EU Competition Law and Policy: What Does the Future Look Like?
May 31, 2024 by
CPI