CymaBay Therapeutics, a clinical-stage biopharmaceutical company, has agreed to be acquired by Gilead Sciences in a deal worth $4.3 billion. This news has caused shares of CymaBay to surge nearly 25% and reach a new record high in early trading.
Premium Acquisition Deal
Gilead will pay $32.50 per share in cash for CymaBay, representing a premium of approximately 27% over Friday's closing price. This offer also surpasses CymaBay's previous all-time high of $26.35, which was reached during Friday's session.
Following the announcement, shares of CymaBay were trading at $31.91, reflecting a 24% increase. Meanwhile, Gilead's share price saw a modest 0.2% increase to $73.82.
Strengthening Gilead's Liver Portfolio
The acquisition of CymaBay will enhance Gilead's liver portfolio by adding seladelpar, the lead product candidate of CymaBay. Seladelpar is targeted towards the treatment of primary biliary cholangitis, a chronic and progressive liver disease.
FDA Priority Review for Seladelpar
CymaBay recently received priority review from the U.S. Food and Drug Administration (FDA) for its application seeking approval of seladelpar. This designation is granted to medications that have the potential to significantly improve the treatment of serious diseases. It also shortens the review period.
Target Action Date and Advisory Committee Meeting
The FDA has set a target action date of August 14 for the application. Notably, the agency does not currently have plans to hold an advisory committee meeting to discuss the application.