CymaBay (CBAY) stock skyrocketed Monday after Gilead Sciences (GILD) announced it will buy it for $4.3 billion.
X
The smaller biotech company is working on a treatment for a liver disease called primary biliary cholangitis. Recent testing suggests CymaBay’s seladelpar could improve the hallmark itching associated with PBC. Gilead notes the acquisition will complement its existing portfolio of liver disease drugs.
“We are looking forward to advancing seladelpar by leveraging Gilead’s longstanding expertise in treating and curing liver diseases,” Gilead Chief Executive Daniel O’Day said in a written statement.
In premarket trades on today’s stock market, CymaBay stock surged 24.5% to 31.99. The deal values shares at $32.50 apiece. Gilead stock sank a fraction.
More to follow.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
YOU MAY ALSO LIKE:
AstraZeneca Nose Dives On ‘Thoroughly Underwhelming’ Fourth-Quarter Results
Viking Therapeutics Charges To A Record High On An Update For Its Eli Lilly-Rivaling Obesity Drug
IBD Stock Of The Day: See How To Find, Track And Buy The Best Stocks
Profit From Short-Term Trends With SwingTrader
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
