Gilead Sciences Inc. considers acquiring a stake in Arcus Biosciences Inc., a cancer therapeutics company, that is backed by Alphabet (Google). Arcus’ therapies target small molecules, aimed at helping shrink tumors.
- After a spike of more than 50% after the news story broke, Arcus has a market value of $ 716.3 Million, Alphabet owns c. 11%
- Gilead continues to expand through acquisitions into pharmaceutical Research focused on cancer treatments harnessing the immune system to fight tumors.
- Gilead acquired Forty Seven (in which Alphabet also held a stake) in a $4.9 billion deal last month, and
- In 2017 Gilead acquired Kite Pharma for $11 Billion. The investment has so far yet to pay off
- Development partnerships between Gilead and Arcus might as well be possible
Update: Market participants seem to take the news negatively as GILD is trading lower today with -4% vs S&P trading lower with -2% only