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Gilead to Buy 49.9% Stake in Private Biotech for $275M
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Gilead Sciences, Inc. (GILD - Free Report) announced that it will acquire a 49.9% equity stake in San Francisco, CA-based private biotech Pionyr Immunotherapeutics Inc., which is engaged in developing first-in-class cancer immunotherapies. In addition, Gilead obtained an exclusive option to purchase the remainder of Pionyr at a later date.
Per the agreement, shareholders of Pionyr will be eligible to receive $275 million upon the deal’s closure. The stockholders may also earn up to an additional $1.47 billion in option exercise fees and future development/regulatory milestone payments.
Meanwhile, Gilead will provide extra funding for Pionyr’s pipeline candidates, PY314 and PY159, which are currently in pre-clinical studies. Pionyr plans to file an investigational new drug (IND) application for both PY314 and PY159 with the FDA in the third quarter of 2020.
Per the press release, both candidates have demonstrated preclinical efficacy, suggesting potential in solid tumors combined with established anti-PD(L)-1 agents. The transaction is subject to customary closing conditions and is expected to close shortly.
Importantly, Gilead plans to advance the above-mentioned programs with a goal of developing new therapies to improve the treatment of cancer in the days ahead.
Shares of Gilead have rallied 15.5% so far this year compared with the industry’s increase of 12.8%.
We note that Gilead is looking to boost its portfolio and pipeline through deals and acquisitions. The company is also eyeing expansion beyond antivirals into other therapeutic areas, such as cancer. The acquisition of Pionyr is a step in this direction.
In 2017, Gilead bought Kite Pharma to foray into the emerging field of cell therapy. Kite is a pioneer in cell therapy having developed engineered cell therapies that express either a chimeric antigen receptor (CAR) or an engineered T cell receptor (TCR), depending on the type of cancer.
The company also acquired Cell Design Labs, Inc. for $567 million in December 2017. Cell Design Labs is a leader in developing cell-based therapies, and uses its synNotch and Throttle technology platforms. These technological platforms enhanced Gilead’s cellular therapy research efforts, which Gilead gained through Kite Pharma acquisition.
Zacks Rank & Other Stocks to Consider
Gilead currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the healthcare sector include Ligand Pharmaceuticals Incorporated , NuCana PLC (NCNA - Free Report) and Vertex Pharmaceuticals Incorporated (VRTX - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings estimates have been revised 7.2% upward for 2020 and 10% for 2021 over the past 60 days. The stock has gained 10.8% year to date.
NuCana’s loss per share estimates have narrowed 17% for 2020 and 18.1% for 2021 over the past 60 days.
Vertex’s earnings estimates have moved 16% north for 2020 and 8% for 2021 over the past 60 days. The stock has surged 35.1% year to date.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Gilead to Buy 49.9% Stake in Private Biotech for $275M
Gilead Sciences, Inc. (GILD - Free Report) announced that it will acquire a 49.9% equity stake in San Francisco, CA-based private biotech Pionyr Immunotherapeutics Inc., which is engaged in developing first-in-class cancer immunotherapies. In addition, Gilead obtained an exclusive option to purchase the remainder of Pionyr at a later date.
Per the agreement, shareholders of Pionyr will be eligible to receive $275 million upon the deal’s closure. The stockholders may also earn up to an additional $1.47 billion in option exercise fees and future development/regulatory milestone payments.
Meanwhile, Gilead will provide extra funding for Pionyr’s pipeline candidates, PY314 and PY159, which are currently in pre-clinical studies. Pionyr plans to file an investigational new drug (IND) application for both PY314 and PY159 with the FDA in the third quarter of 2020.
Per the press release, both candidates have demonstrated preclinical efficacy, suggesting potential in solid tumors combined with established anti-PD(L)-1 agents. The transaction is subject to customary closing conditions and is expected to close shortly.
Importantly, Gilead plans to advance the above-mentioned programs with a goal of developing new therapies to improve the treatment of cancer in the days ahead.
Shares of Gilead have rallied 15.5% so far this year compared with the industry’s increase of 12.8%.
We note that Gilead is looking to boost its portfolio and pipeline through deals and acquisitions. The company is also eyeing expansion beyond antivirals into other therapeutic areas, such as cancer. The acquisition of Pionyr is a step in this direction.
In 2017, Gilead bought Kite Pharma to foray into the emerging field of cell therapy. Kite is a pioneer in cell therapy having developed engineered cell therapies that express either a chimeric antigen receptor (CAR) or an engineered T cell receptor (TCR), depending on the type of cancer.
The company also acquired Cell Design Labs, Inc. for $567 million in December 2017. Cell Design Labs is a leader in developing cell-based therapies, and uses its synNotch and Throttle technology platforms. These technological platforms enhanced Gilead’s cellular therapy research efforts, which Gilead gained through Kite Pharma acquisition.
Zacks Rank & Other Stocks to Consider
Gilead currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the healthcare sector include Ligand Pharmaceuticals Incorporated , NuCana PLC (NCNA - Free Report) and Vertex Pharmaceuticals Incorporated (VRTX - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings estimates have been revised 7.2% upward for 2020 and 10% for 2021 over the past 60 days. The stock has gained 10.8% year to date.
NuCana’s loss per share estimates have narrowed 17% for 2020 and 18.1% for 2021 over the past 60 days.
Vertex’s earnings estimates have moved 16% north for 2020 and 8% for 2021 over the past 60 days. The stock has surged 35.1% year to date.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>