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
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI