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Can Gilead (GILD) Squeeze $12 Billion From Kite Pharma (KITE)?



8/30/2017 6:23:01 AM

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Gilead Sciences, Inc. just took a bold leap into the unknown with an agreement to acquire Kite Pharma Inc. for $180 per share or about $11.9 billion. Gilead's last 11-figure bet turned out to be one of the best investments in biopharma history, and it's tempting to believe the company can catch lightning in a bottle once again.

Unfortunately, this deal is nothing like the Pharmasset purchase that helped Gilead become one of the most profitable drugmakers of its time. The commercial viability of CAR-T therapies, which involve withdrawing, modifying, and then reintroducing patient cells, is a big scary question mark. Despite the challenges, Gilead thinks it can make this deal cash flow positive within a few years. Here's what's standing in the way.

Read at Motley Fool


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