CymaBay Therapeutics (NASDAQ: CBAY) stock skyrocketed after Gilead Sciences (GILD) announced to acquire the liver disease drugmaker for $4.3 billion on Monday.
U.S. drugmaker Gilead Sciences (NASDAQ: GILD) has announced to buy CymaBay Therapeutics (CBAY) for $4.3 billion. This acquisition, confirmed on Monday, will broaden Gilead’s arsenal with a new treatment for chronic liver disease.
Under the deal, Gilead will shell out $32.50 in cash for each share of CymaBay. This marks a premium of 26.5% from Friday’s stock closing price.
The acquisition is particularly significant as it will grant Gilead access to CymaBay’s leading drug candidate, seladelpar. Seladelpar holds promise to combat primary biliary cholangitis, a chronic inflammatory liver disease.
CymaBay had recently submitted a marketing application to the U.S. Food and Drug Administration (FDA) for the drug in December. The FDA has set a decision date for August 14, and if greenlit, Gilead anticipates that the drug will significantly contribute to its revenue growth.
The deal will be finalized in the first quarter and is predicted to have a neutral impact on Gilead’s earnings for the year 2025.
CymaBay (NASDAQ: CBAY) Stock Movement
CBAY stock shot up 25.38% to close at $32.21 on Monday. The traders had exchanged hands with 70,444,273 (70.44 million) shares compared to the average daily trading volume of 1.69 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
