Gilead Sciences Completes Acquisition of CymaBay for $4.3 Billion

47

Gilead Sciences has finalized its acquisition of CymaBay Therapeutics for an estimated total equity value of $4.3 billion. This acquisition includes CymaBay’s lead investigational product candidate, seladelpar, designed for the treatment of primary biliary cholangitis (PBC) and associated pruritus. The addition of seladelpar enriches Gilead’s existing liver portfolio, reinforcing the company’s commitment to delivering innovative therapies to patients.

Daniel O’Day, Chairman and CEO of Gilead Sciences, expressed enthusiasm for the potential of seladelpar to revolutionize the treatment landscape for individuals with primary biliary cholangitis. He commended the efforts of the CymaBay team and reiterated Gilead’s dedication to addressing critical unmet medical needs.

The acquisition process commenced on February 12, 2024, with Gilead and CymaBay signing a definitive merger agreement. Following a tender offer initiated on February 23, 2024, Gilead successfully completed the acquisition on March 22, 2024. As a result, CymaBay is now a wholly owned subsidiary of Gilead, and its common stock will cease trading on the Nasdaq Global Select Market.

Regarding financial impact, the transaction is expected to reduce Gilead’s GAAP and non-GAAP earnings per share (EPS) for 2024 by approximately $3.10 – $3.20. This reduction factors in acquisition costs, operating expenses, and lower interest income. Additionally, considering full-year 2024 guidance, the acquisition is projected to decrease Gilead’s GAAP and non-GAAP EPS by approximately $3.35 – $3.45.

It’s important to note that seladelpar is still an investigational product awaiting regulatory approval, and its safety and efficacy have yet to be established.