3 Reasons Gilead Sciences Jumped to Buy Kite Pharma
Gilead Sciences Inc. (NASDAQ: GILD) might be the most disciplined capital allocator in biotech. For years, its management has resisted calls from the peanut gallery to make a big acquisition, while it built a fortress balance sheet that boasted $36.6 billion cash and equivalents at the end of June.
Gilead cited an overpriced market for new drug candidates as an excuse for keeping its purse strings drawn tight. This is why the recently announced $11.9 billion acquisition of Kite Pharma Inc. (NASDAQ: KITE) is such a head scratcher. The cell-based cancer therapy pioneer began the year with a $2.3 billion market cap.
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Source: Fool.com