Gilead Sciences Acquires CymaBay for $4.3 Billion

By Tamara Parker • Friday, March 22 10:14 • Permanent Link

Gilead Sciences, Inc. has successfully completed the acquisition of CymaBay Therapeutics, Inc. for approximately $4.3 billion in total equity value. This acquisition aims to strengthen Gilead's position in developing innovative therapies for challenging liver diseases. The addition of CymaBay's investigational lead product candidate, seladelpar, for the treatment of primary biliary cholangitis (PBC) including pruritus, complements Gilead’s existing liver portfolio.

The tender offer to acquire all outstanding shares of CymaBay at a price of $32.50 per share was successfully completed on March 22, 2024. This resulted in Gilead accepting for payment all shares validly tendered and not withdrawn, representing approximately 77.3% of CymaBay’s outstanding shares.

As a result of the completion of the merger, CymaBay has become a wholly owned subsidiary of Gilead and its common stock will no longer be listed for trading on the NASDAQ Global Select Market, effective as of the close of the market on March 22, 2024.

The acquisition is expected to be accounted for as an asset acquisition and is projected to reduce Gilead's GAAP and non-GAAP 2024 earnings per share (EPS) by approximately $3.10 * $3.20. Additionally, considering acquisition costs, associated operating expenses, and lower interest income, Gilead expects the transaction to reduce its GAAP and non-GAAP 2024 EPS by approximately $3.35 * $3.45 relative to the full-year 2024 guidance shared on February 6, 2024.

It is important to note that seladelpar is an investigational product that has not been approved for use anywhere globally, and its safety and efficacy have not been established.

Gilead Sciences, Inc. is a biopharmaceutical company committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, and cancer. The company operates in more than 35 countries worldwide, with headquarters in Foster City, California. The market has reacted to these announcements by moving the company's shares 0.1% to a price of $73.17. For the full picture, make sure to review Gilead Sciences's 8-K report.

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