Home News Why Gilead Sciences is buying CymaBay Therapeutics for $4.3 billion

Why Gilead Sciences is buying CymaBay Therapeutics for $4.3 billion

by SuperiorInvest

Key takeaways

  • Gilead Sciences is purchasing CymaBay Therapeutics, giving Gilead access to CymaBay's leading treatment for liver disease.
  • Gilead will pay $4.3 billion or $32.50 per share in cash for CymaBay, a 26.5% premium to CymaBay's closing price on Friday.
  • CymaBay shares soared to an all-time high on Monday following the news.

Shares of CymaBay Therapeutics (CBAY) soared to an all-time high on Monday after Gilead Sciences (GILD) announced its $4.3 billion purchase of the developer of drugs for the liver and other chronic diseases.

Gilead said Monday it will pay $32.50 per share in cash for CymaBay, a 26.5% premium to CymaBay's closing price on Friday.

CymaBay's lead investigational product, seladelpar, is a treatment for primary biliary cholangitis (PBC), an autoimmune disease that affects the bile ducts of the liver. It achieved statistical significance in all its primary endpoints in a phase 3 trial.

The companies noted that the Food and Drug Administration completed its submission review and accepted a new drug application for seladelpar, granting it priority review. The medicines regulator is scheduled to make a decision in August.

Gilead Chief Executive Officer (CEO) Daniel O'Day said that by joining forces with CymaBay, “we have the potential to address a significant unmet need for people living with PBC and expand our existing broad range of transformational therapies.”

The transaction is expected to close this quarter.

CymaBay shares rose 25% to $32.10 per share at approximately 1:20 p.m. ET on Monday after the acquisition was announced. Gilead shares rose 0.8% to $74.29.

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