Gilead Sciences has entered into an agreement to acquire CymaBay Therapeutics for $4.3 billion, marking a strategic move to diversify its portfolio beyond its core HIV business. The acquisition includes CymaBay's lead experimental drug, seladelpar, currently under review by the U.S. Food and Drug Administration as a potential treatment for primary biliary cholangitis, a chronic inflammatory liver disease. The transaction provides Gilead with access to seladelpar's blockbuster potential, estimated to generate $1.9 billion in sales by 2029, pending regulatory approval expected by August 14, 2024.
This acquisition comes as Gilead faces setbacks in recent clinical trials, including the disappointing results of its experimental oral COVID antiviral treatment, obeldesivir, and the failure of cancer drug Trodelvy to significantly improve survival in previously treated patients with a specific type of lung cancer. The deal is seen as a strategic move to strengthen Gilead's position in the liver disease treatment market, complementing its existing portfolio that includes therapies for viral hepatitis. Despite recent challenges, the acquisition is anticipated to close in the first quarter of 2024, with Gilead projecting neutrality to earnings in 2025.
