Gilead Sciences Couldn't Have Timed its Splash Into CAR-T Better
Investors have been wondering for a few years now when Gilead Sciences (NASDAQ: GILD) would spend some of its massive cash hoard and acquire a new company, and this week, Gilead put those wonders to rest (for now) with its $11.9 billion acquisition of Kite Pharmaceuticals (NASDAQ: KITE).
Novartis (NYSE: NVS) Kymriah, a game-changing CAR-T cancer drug, won FDA approval this week, increasing the odds that Kite Pharma will score a regulatory green light for its CAR-T Axi-Cel in November. Since Gilead Sciences' acquisition of Kite Pharma is expected to close around the same time the FDA announces its Axi-Cel decision, investors are right to wonder about CAR-T's market potential and what this acquisition could mean for Gilead Sciences' investors.
In this episode of The Motley Fool's Industry Focus: Healthcare podcast, contributor Todd Campbell is reunited with analyst Michael Douglass to break down the deal and discuss just how important this new class of cancer treatment is to Gilead Sciences shareholders.
Source: Fool.com
