Gilead Sciences agreed to buy Forty Seven for about US$4.9 billion to advance into one of the hottest areas of pharmaceutical research, cancer treatments that harness the immune system to fight tumors, reported Bloomberg.
In a statement on Monday, Gilead said it would pay US$95.50 a share for Forty Seven, a 96% premium to the group’s closing share price on Thursday, February 27, when talks between the two companies leaked. Shares in Forty Seven, which was founded in 2015 and is based in Menlo Park, California, surged 61% following the announcement of the deal.
“This agreement builds on Gilead’s presence in immuno-oncology and adds significant potential to our clinical pipeline,” said Daniel O’Day, Gilead’s chief executive. “With a profile that lends itself to combination therapies, magrolimab could potentially have transformative benefits for a range of tumour types.”
Gilead is not alone in turning to M&A to bolster its portfolio of cancer drugs. Early last year Bristol-Myers Squibb purchased Celgene for US$93 billion, while Pfizer snapped up Array BioPharma for US$11 billion in June. Rivals Eli Lilly and GlaxoSmithKline have also bet billions of dollars on cancer treatments over the past 18 months.
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