Gilead Ups Stake in Galapagos With $5B Deal to Jumpstart Its R&D
Summary
The move represents the biggest gamble thus far by Gilead CEO Daniel O’Day, the former head of Roche’s pharmaceutical division who took over the Foster City, CA, firm in March. Gilead is “basically offshoring R&D to Galapagos at a big price tag,” wrote Raymond James analyst Steven Seedhouse, in a research note. RBC Capital Markets analyst Brian Abrahams has estimated that the drug could generate more than $3 billion in sales, despite looming competition with other so-called JAK inhibitors for RA. Since O’Day started in March, Gilead has announced plans to separate the CAR-T division, Kite Pharma—which the company acquired for $12 billion in 2017—into an independent business unit. It has also inked a string of smaller deals with privately held biotechs like Insitro, Goldfinch Bio, Nurix, and Carna Biosciences.
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