Gilead offers $4.3 billion for Cymabay Therapeutics.

Last Updated: 16. Februar 2024By

Recently, the stock price of Cymabay Therapeutics has been on the rise. After the rival company Gilead made a takeover offer, the share price jumped by more than 20%. The intention behind this deal is clear: Gilead wants to expand its portfolio in the field of chronic liver diseases by acquiring Cymabay, a drug developer.

Gilead – biopharmaceutical giant from the USA Gilead is an American biopharmaceutical company headquartered in Foster City, California, specializing in the development and production of drugs. It was founded in 1987 by Michael Riordan, a doctor who had previously worked for the United States health authority. Since its inception, the company has grown significantly and is now one of the largest biopharmaceutical companies in the world.

Gilead’s business model is based on the development of drugs for difficult-to-treat diseases such as HIV, hepatitis, cancer, and inflammatory diseases. The company specializes in researching antiviral therapies.

In the past fiscal year, the company generated $26.93 billion in revenue from product sales. The company’s books showed a profit of $8.45 billion.

Acquisition to strengthen position in liver diseases Gilead is now strengthening its position in the field of liver diseases and wants to acquire Cymabay Therapeutics. For the company focused on chronic liver diseases, Gilead is offering $4.3 billion. Gilead is offering $32.50 per share of Cymabay, a 27% premium over the closing price on February 9.

Through the planned acquisition, Gilead will gain access to an experimental drug called Seladelpar for primary biliary cholangitis (PBC). This is a chronic disease characterized by a toxic accumulation of bile acids in the liver. The rare autoimmune liver disease primarily affects women. According to Gilead, there are currently 130,000 people affected by this disease in the United States.

Cymabay announced on Monday that the US Food and Drug Administration (FDA) has accepted the application for the drug Seladelpar and will decide on approval by mid-August.

Cymabay Therapeutics stock nears acquisition price After the stock price jump, Cymabay’s share price was only slightly below the offer price (32.50 dollars) yesterday afternoon. Over the past 12 months, the stock has gained 300% in value. Gilead expects Seladelpar, if approved, to drive revenue growth and increase earnings per share after 2025.

Analysts expect peak sales of up to $2 billion With Cymabay, Gilead is once again investing in the field of liver diseases, where the company has achieved great success with highly effective drugs against hepatitis C. Meanwhile, analysts are optimistic: Michael Yee from Jefferies predicts Seladelpar sales that could peak between $500 million and $1 billion. Cantor Fitzgerald forecasts an even higher peak sales of $2 billion.