By Saabira Chaudhuri
Gilead Sciences Inc. (GILD) has agreed to buy YM BioSciences
Inc. (YMI) for $510 million in cash, as the drug company looks to
boost its oncology portfolio.
Gilead will pay a per-share price of $2.95, an 81% premium over
the company's Tuesday closing price. Shares of YM surged 79% to
$2.91 in recent premarket trading. Meanwhile, Gilead's shares edged
up 41 cents to $76.75.
Gilead plans to fund the acquisition with cash on hand. The
transaction is expected to close in the first quarter of next
year.
"This acquisition represents an opportunity to add a
complementary clinical program in the area of hematologic cancers
to our growing oncology portfolio," Gilead's Chief Scientific
Officer Norbert W. Bischofberger said.
YM's lead drug candidate, CYT387, is an orally-administered,
once-daily, selective inhibitor of the Janus kinase family,
specifically JAK1 and JAK2. The JAK enzymes have been implicated in
a number of disorders including myeloproliferative diseases,
inflammatory disorders and certain cancers. YM has reported
positive results from a clinical trial of CYT387 in 166 patients
with myelofibrosis, a life-threatening myeloproliferative
disease.
Myelofibrosis is a progressive, chronic bone marrow disorder in
which the marrow is replaced by fibrous scar tissue, making it
difficult for the bone marrow to sufficiently produce blood
cells.
"Based on promising Phase 2 data, we believe CYT387 could
provide important clinical benefit for patients with myelofibrosis,
including potential improvements with regard to anemia and
decreased dependence on blood transfusions," Mr. Bischofberger
said.
He added that Gilead will advance CYT387 into a Phase 3 study as
quickly as possible.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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