Did Gilead overpay in its latest deal?
Biotech investors tend to agree that Gilead Sciences needs to spend money to secure its future. Yesterday, the company said it would trade $4.9 billion for Forty Seven, a developer of cancer drugs, and the narrative predictably evolved: Did Gilead pay too much?
“Not at all,” CEO Dan O’Day told STAT. “I think this is a foundational oncology asset.”
He’s referring to magrolimab, Forty Seven’s antibody against the eponymous CD47 protein. Cancer cells use that protein to evade the body’s defenses, and thus blocking it should theoretically sic the immune system on malignancies. Forty Seven has so far established magrolimab’s promise in a pair of blood cancers, but O’Day — and the Gilead bean counters who signed off on the takeout price — are betting that Forty Seven’s drug has much broader potential.
Read more.
“Not at all,” CEO Dan O’Day told STAT. “I think this is a foundational oncology asset.”
He’s referring to magrolimab, Forty Seven’s antibody against the eponymous CD47 protein. Cancer cells use that protein to evade the body’s defenses, and thus blocking it should theoretically sic the immune system on malignancies. Forty Seven has so far established magrolimab’s promise in a pair of blood cancers, but O’Day — and the Gilead bean counters who signed off on the takeout price — are betting that Forty Seven’s drug has much broader potential.
Read more.
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