Gilead Sciences Expands Liver Portfolio With Acquisition Of CymaBay Therapeutics For $32.50/Share Or A Total Equity Value Of $4.3B
Portfolio Pulse from Benzinga Newsdesk
Gilead Sciences, Inc. (GILD) is set to acquire CymaBay Therapeutics, Inc. (CBAY) for $32.50 per share, totaling $4.3 billion. This acquisition adds seladelpar, a promising treatment for primary biliary cholangitis (PBC), to Gilead's liver disease portfolio. Seladelpar has received FDA priority review with an anticipated approval in Q3 2024. The transaction, expected to close in Q1 2024, is seen as neutral to Gilead's 2025 earnings and significantly accretive thereafter.
February 12, 2024 | 1:31 pm
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POSITIVE IMPACT
CymaBay Therapeutics is being acquired by Gilead Sciences for $32.50 per share, a 27% premium over its closing price on February 9, 2024. The acquisition focuses on seladelpar, a treatment for PBC.
CymaBay's acquisition by Gilead at a significant premium reflects the value of its lead product candidate, seladelpar, and its potential market impact. This acquisition is highly relevant and important for CymaBay shareholders, offering a substantial return. The premium price and strategic importance of seladelpar for Gilead's portfolio suggest a positive short-term impact on CymaBay's stock.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Gilead's acquisition of CymaBay for $4.3 billion adds seladelpar to its liver disease portfolio, with FDA approval anticipated in Q3 2024. The deal is expected to be neutral to 2025 earnings and accretive thereafter.
The acquisition of CymaBay positions Gilead to strengthen its liver disease portfolio with a promising treatment, seladelpar. Given the FDA's priority review and the anticipated approval, this move is likely to positively impact Gilead's stock in the short term. The financial terms indicate a strategic investment that is expected to be earnings-neutral in the near term but significantly beneficial in the longer term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100