Gilead raises $10 billion, stoking fresh rumors of a monster acquisition
- Gilead raised $10 billion this week, once again stoking acquisition rumors. On a call with analysts, the company confirmed that it is looking for deal opportunities.
- Gilead's President, John Milligan, told told analysts that anything is possible in terms of possible acquisitions, including large and small deals, as well as "transformative" deals.
- Much of the excitement about a possible deal is driven by Gilead's obvious success with its $11 billion cash acquisition of Pharmasset in 2011—a deal that ultimately yielded Sovaldi and Harvoni.
There were many skeptics four years ago when Gilead bought Pharmasset, and many of them questioned the deal via social media. But it seems that Gilead got the last laugh, given the almost untouchable status of Sovaldi and Harvoni as revenue-generating, game-changing hepatitis C therapies. Second quarter revenues alone were close to $5 billion.
So when Gilead raises money and says it's looking for deals, no one laughs. Instead, lots of interested parties have been tuning into Gilead's analysts' calls. The short list, according to analysts, includes companies such as Vertex, Incyte, BioMarin, Medivation, and Alexion.
It could even wind up being more than one company—but one thing is certain: Gilead is looking for the next big opportunity to expand its pipeline.