Gilead Sciences has agreed to acquire CymaBay Therapeutics for $4.3 billion, gaining access to an experimental liver disease treatment with potential blockbuster sales. The deal provides Gilead with CymaBay's lead experimental drug, seladelpar, which is under FDA review for potential treatment of primary biliary cholangitis. This acquisition comes as Gilead seeks growth beyond its core HIV business and amidst recent setbacks in clinical trials for other drugs.
Gilead Sciences has agreed to acquire CymaBay Therapeutics for $4.3 billion, gaining access to an experimental liver disease treatment, seladelpar, with potential blockbuster sales. The deal comes as Gilead seeks growth beyond its core HIV business and follows setbacks in clinical trials for other drugs. The acquisition is expected to complement Gilead's portfolio of liver disease treatments and is anticipated to be neutral to Gilead's earnings in 2025.
Shares of Akero Therapeutics (AKRO) and 89bio (ETNB) plummeted after Akero's liver-disease treatment failed to meet expectations in a midstage study. While the drug showed statistically significant results in resolving NASH, the improvement in liver scarring was not statistically significant. Despite this, analysts believe that the effectiveness data sets for both companies are strong, with 89bio potentially pulling ahead due to its dosing schedule and lower side effects. Akero shares fell 64% and 89bio shares tumbled 36.6% as a result of the news.
