CymaBay (NASDAQ:CBAY) stock is rising higher on Monday after the clinical-stage biopharmaceutical company announced an acquisition agreement with Gilead Sciences (NASDAQ:GILD).
That deal has Gilead Sciences agreeing to acquire CymaBay for $4.3 billion. This has it agreeing to pay $32.50 per share in cash for CBAY stock via a tender offer. That’s a 27% premium compared to the stock’s closing price last Friday.
Gilead Sciences is acquiring CymaBay for its lead product candidate, seladelpar. This is a treatment in development to treat primary biliary cholangitis (PBC). Gilead Sciences notes that this compliments its portfolio of liver disease treatments.
Sujal Shah, President and CEO of CymaBay, said the following about the acquisition deal with Gilead Sciences:
“Now that seladelpar has achieved priority review with the FDA, we are excited that Gilead, with its long-standing commitment to patients with liver disease, can apply its regulatory and commercial expertise to bring seladelpar as quickly as possible to people with PBC.”
What This Means for CBAY Stock
CymaBay and Gilead Sciences are expecting the acquisition to close in the first quarter of 2024. When it does, CBAY will be acquired by Gilead Sciences. That will result in its shares no longer trading publicly.
In anticipation of the tender offer, shares of CBAY stock are seeing heavy trading today. That has more than 48 million units changing hands as investors buy the shares. That’s a massive jump in trading compared to its daily average of about 1.7 million shares.
CBAY stock is up 24.9% as of Monday morning.
Investors can find even more of the most recent stock market stories ready to go below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
