Gilead Sciences, Inc.
) completed its acquisition of Canada-based drug development
company, YM BioSciences Inc. for $2.95 per share. Through this
acquisition, Gilead aims to strengthen its oncology pipeline.
Following the closure of the deal, YM BioSciences has become a
wholly-owned subsidiary of Gilead. As per the terms of the deal,
each shareholder of YM BioSciences is entitled to receive $2.95
for each share in cash. Moreover, holders of warrants and stock
options are entitled to get the difference between the offer
price of the deal and the exercise price of the warrant or stock
option in cash.
Gilead's oncology pipeline has been strengthened by the addition
of CYT387, the erstwhile YM BioSciences' lead candidate. CYT387
has completed phase I/II studies for the myelofibrosis
At the time of announcing the deal in Dec 2012, Gilead had
stated that it intends to move the candidate into phase III
studies for the same indication in the second half of 2013.
Gilead intends to evaluate CYT387 in other oncology indications
Currently, the lead oncology candidate at Gilead is idelalisib
(formerly GS-1101). The candidate, added to Gilead's pipeline
through its 2011 acquisition of Calistoga Pharmaceuticals, is
under development for the chronic lymphocytic leukemia and
indolent non-Hodgkin's lymphoma indications.
Another oncology candidate at Gilead is simtuzumab (formerly
GS- 6624). The candidate, added to Gilead's pipeline through its
2010 acquisition of Arresto Biosciences, is being evaluated in
multiple oncology indications.
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Gilead, a biopharmaceutical company, currently carries a Zacks
Rank #3 (Hold). Biopharma stocks, such as
Peregrine Pharmaceuticals, Inc.
) are favorably placed at the current level. While Peregrine
Pharma and Medivation carry a Zacks Rank #2 (Buy), Targacept
carries a Zacks Rank #1 (Strong Buy).