Biopharmaceutical giant Gilead Sciences (NASDAQ:GILD) will acquire CymaBay Therapeutics (NASDAQ:CBAY) for $32.50 per share. This pegs the total equity value for the deal at $4.3 billion.
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The strategic M & A move expands Gilead’s liver portfolio with the addition of CymaBay’s lead candidate, seladelpar. The drug is targeted for the treatment of primary biliary cholangitis (PBC), including pruritus. PBC, a rare cholestatic liver disease, primarily affects women over the age of 40.
Seladelpar has been shown to regulate critical metabolic and liver disease pathways. The drug has been granted a priority review by the U.S. Food and Drug Administration (FDA) with an action date of August 14, 2024. Notably, seladelpar has also received Orphan Drug designation in the U.S. and Europe.
Under the deal, a subsidiary of Gilead will undertake a tender offer to acquire all outstanding shares of CymaBay for $32.50 per share in cash. It is anticipated that the transaction will close in the first quarter. Today’s announcement has sent CymBay shares nearly 25% higher. The stock has now rallied by nearly 204% over the past year.
Is GILD a Good Investment?
While Gilead’s share price is also ticking higher, the stock remains nearly 16% lower over the past year. Overall, the Street has a Moderate Buy consensus rating on Gilead, and the average GILD price target of $87.56 implies a 17.5% potential upside in the stock.
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