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.
