Gilead Sciences completes $4.3bn acquisition of CymaBay Therapeutics to enhance liver disease portfolio

Gilead Sciences, Inc. (Nasdaq: GILD) has officially announced the successful acquisition of CymaBay Therapeutics, Inc. (Nasdaq: CBAY) for a staggering $4.3 billion, a move that substantially strengthens Gilead’s position in the liver disease treatment landscape. The acquisition brings CymaBay’s leading investigational product, seladelpar, under Gilead’s expanding liver portfolio, marking a significant step forward in the company’s commitment to offering transformative medicines to patients globally.

Seladelpar, an investigational treatment for primary biliary cholangitis (PBC) including pruritus, represents a potential best-in-disease therapy. Daniel O’Day, Chairman and CEO of Gilead Sciences, expressed gratitude towards the CymaBay team for their dedication to addressing a critical unmet medical need and voiced enthusiasm about advancing seladelpar’s development. This acquisition is poised to build on Gilead’s more than two decades of legacy in addressing liver disease.

The transaction was structured around a tender offer initiated on February 23, 2024, to purchase all outstanding shares of CymaBay at $32.50 per share. With the completion of the tender offer on March 22, 2024, Gilead will integrate CymaBay as a wholly owned subsidiary, leading to the delisting of CymaBay’s common stock from the Nasdaq Global Select Market. The acquisition reflects a strategic effort to diversify Gilead’s treatment options and enhance its pipeline with seladelpar’s promising potential.

Seladelpar has not yet been approved globally, pending the outcome of regulatory reviews, including a New Drug Application by the FDA, which has granted the medication priority review status with a target action date of August 14, 2024. This investigational drug has also received Breakthrough Therapy Designation from the FDA and Orphan Drug Designation in the U.S. and Europe for the treatment of PBC.

The financial implications of the merger indicate an expected EPS reduction for Gilead in 2024, reflecting acquisition costs, associated operating expenses, and lower interest income. However, the strategic acquisition of CymaBay and the inclusion of seladelpar into Gilead’s portfolio underscore the company’s ongoing investment in groundbreaking therapies that promise to transform the healthcare landscape for patients with liver and other chronic diseases.