Why Gilead Sciences Is Buying CymaBay Therapeutics for $4.3 Billion
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Key Takeaways
Gilead Sciences is buying CymaBay Therapeutics, giving Gilead access to CymaBay’s lead treatment for liver disease.
Gilead will pay $4.3 billion or $32.50 per share in cash for CymaBay, a 26.5% premium over CymaBay’s closing price Friday.
CymaBay shares skyrocketed Monday to an all-time high after the news.
Shares of CymaBay Therapeutics (
CBAY
) soared to an all-time high Monday after Gilead Sciences (
GILD
) announced it’s buying the developer of medicine for liver and other chronic diseases for $4.3 billion.
Gilead said Monday that it will pay $32.50 per share in cash for CymaBay, a 26.5% premium to CymaBay’s
closing price
Friday.
CymaBay’s investigational lead product, seladelpar, is a treatment for primary biliary cholangitis (PBC), an autoimmune disease that affects the bile ducts in the liver. It achieved statistical significance across its primary endpoints in a Phase 3 trial.
The companies noted that the
Food and Drug Administration
has completed its filing review and accepted a new drug application for seladelpar, granting it priority review. A decision from the drug regulator is scheduled to come 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 on our existing broad range of transformational therapies.”
The transaction is expected to close this quarter.
CymaBay shares were up 25% at $32.10 per share as of about 1:20 p.m. ET Monday after the acquisition was announced. Shares of Gilead ticked up 0.8% to $74.29.
