Gilead Sciences to acquire Kite Pharma for $11.9 billion

Gilead Sciences announced today it will acquire Kite Pharma for $180 per share in cash.

The transaction will be valued at approximately $11.9 billion, according to a Gilead-issued press release.

The definitive agreement — unanimously approved by both the boards of directors for both companies — is expected to close in the fourth quarter of this year.

“The acquisition of Kite establishes Gilead as a leader in cellular therapy and provides a foundation from which to drive continued innovation for people with advanced cancers,” John F. Milligan, PhD, president and CEO of Gilead, said in the press release. “The field of cell therapy has advanced very quickly, to the point where the science and technology have opened a clear path toward a potential cure for patients.

“We are greatly impressed with the Kite team and what they have accomplished, and share their belief that cell therapy will be the cornerstone of treating cancer,” Milligan added. “Our similar cultures and histories of driving rapid innovation in order to bring more effective and safer products to as many patients as possible make this an excellent strategic fit.”

As part of the acquisition, Gilead will obtain Kite’s engineered cell therapies that express either a chimeric antigen receptor (CAR) or an engineered T cell receptor.

These include axicabtagene ciloleucel, which is in development for refractory aggressive non-Hodgkin’s lymphoma. The FDA granted priority review designation to the therapy.

Kite also has various drug candidates in clinical trials for the treatment of both hematologic cancers and solid tumors. These include KITE-585, a CAR T-cell therapy in development for patients with multiple myeloma.

“From the release of our pivotal data for axi-cel, to our potential approval by the FDA, this is a year of milestones,” Arie Belldegrun, MD, FACS, chairman, president and CEO of Kite, said in the release. “Each and every accomplishment is a reflection of the talent that is unique to Kite.

“We are excited that Gilead, one of the most innovative companies in the industry, recognized this value and shares our passion for developing cutting-edge and potentially curative therapies for patients,” Belldegrun added. “CAR T has the potential to become one of the most powerful anti-cancer agents for hematologic cancers. With Gilead’s expertise and support, we hope to fulfill that potential by rapidly accelerating our robust pipeline and next-generation research and manufacturing technologies for the benefit of patients around the world.”