Sunday, 3 March 2024


Gilead to acquire CymaBay for $4.3 billion By

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FOSTER CITY, Calif. – Gilead Sciences, Inc. (NASDAQ: NASDAQ:) has reached a definitive agreement to acquire CymaBay Therapeutics, Inc. (NASDAQ: NASDAQ:) for $32.50 per share in cash, amounting to an equity value of approximately $4.3 billion. The transaction, approved by both companies’ boards, is expected to close in the first quarter of 2024, pending regulatory approvals and other customary conditions.

This acquisition will add seladelpar, CymaBay’s investigational lead product candidate for the treatment of primary biliary cholangitis (PBC), to Gilead’s liver disease portfolio. Seladelpar has been granted priority review by the U.S. Food and Drug Administration (FDA), with a target action date of August 14, 2024. PBC is a rare, chronic liver disease predominantly affecting women, with an estimated 130,000 affected individuals in the U.S.

Seladelpar, a selective peroxisome proliferator-activated receptor delta (PPARδ) agonist, has demonstrated promising results in Phase 3 trials, achieving statistical significance over placebo in primary composite endpoints and showing significant improvement in pruritus, a common symptom of PBC.

Daniel O’Day, Chairman and CEO of Gilead Sciences, commented on the potential of seladelpar to address the significant unmet need in PBC treatment. Sujal Shah, President and CEO of CymaBay, expressed confidence in Gilead’s ability to bring seladelpar to patients with PBC swiftly.

The tender offer for CymaBay’s common stock represents a 27 percent premium to its closing share price on February 9, 2024. The transaction is anticipated to enhance Gilead’s revenue growth and is expected to be neutral to earnings per share in 2025 and accretive thereafter.

Gilead’s acquisition of CymaBay is subject to a minimum tender of a majority of CymaBay’s outstanding shares and other customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

The information in this article is based on a press release.

InvestingPro Insights

Amidst the strategic move to acquire CymaBay Therapeutics, Gilead Sciences (NASDAQ: GILD) showcases a strong financial and operational footing. The company’s commitment to enhancing shareholder value is evident, as management has been aggressively buying back shares, an InvestingPro Tip that reflects a bullish stance from the company’s leadership. Additionally, Gilead has a history of rewarding investors, having…

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