The big takeover in the pharmaceutical sector drives Wall Street crazy. Gilead Sciences, known for producing breakthrough hepatitis C drugs such as Solvandi, will buy Kite Pharma, a leader in the Car-T industry, for $11,9 billion in cash.
The news was confirmed by both companies through a note specifying that, according to the agreement, Gielad Sciences to buy Kite at a price of $180 per share, an amount that corresponds to a premium of 29% with respect to the closing on the Stock Exchange on Friday 25 August.
The transaction has been approved by both companies' boards of directors and is expected to close in the fourth quarter of 2017. “The acquisition of Kite Pharma places Gilead as leader in cell therapies and provides the foundation for innovative solutions for advanced cancer patients,” said John F. Milligan, president and CEO of Gilead. “The field of cell therapies has advanced very quickly, to the point where science and technology have paved a clear path towards a potential cure. We are very impressed by the Kite team and the results achieved and we share their opinion that cell therapy will be the basis of anti-cancer treatments,” he added.
As previously mentioned, Kite is a leading company in the Car-T sector, i.e. in therapies that use the body's immune cells in order to attack the malignant cells of tumors. If these types of therapies are approved by the board, they could cost up to $500 and generate billions of dollars in revenue.
On Wall Street, a few minutes after the opening, the share of Gilead Sciences gained 2,1% to 75.38 dollars, while that of Kite flies 28,9% to $179.31.
