(Reuters) -U.S. drugmaker Gilead Sciences agreed to acquire CymaBay Therapeutics for $4.3 billion on Monday, adding a treatment for chronic liver disease to its portfolio.
Shares of CymaBay were halted ahead of the announcement in premarket hours.
Gilead will pay $32.50 in cash for each share of CymaBay for the drug developer, representing a premium of 26.5% to Friday’s close.
The deal will give Gilead access to CymaBay’s lead drug candidate called seladelpar for the treatment of primary biliary cholangitis, a type of chronic inflammatory liver disease.
CymaBay had submitted a marketing application to the U.S. Food and Drug Administration (FDA) for the drug in December.
The U.S. health regulator has assigned an action date of August 14 to decide on the use of the drug.
If approved, the drug is expected to enhance Gilead’s revenue growth, the drugmaker said.
The deal, which is expected to close in the first quarter, will be neutral to Gilead’s earnings in 2025.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Krishna Chandra Eluri)
Brought to you by www.srnnews.com