==HOOKIPA Pharma (HOOK) announces $21.25 million equity investment from Gilead Sciences (GILD)

 

HOOKIPA Pharma (HOOK) announces $21.25 million equity investment from GILD 

• HOOK announced that GILD has purchased 15 million shares of HOOKIPA's common stock for approximately $21.25 million, at a price of $1.4167 per share.
• In addition, HOOKIPA has the right, subject to certain terms and conditions, to sell an additional approximately $8.75 million of common stock to Gilead as pro-rata participation in potential future equity raises. The agreement with Gilead replaces the stock purchase agreement that Hookipa entered into with Gilead in 2022.
• The transaction closed on December 20, 2023. Following the completion of the stock purchase, Gilead's ownership in HOOKIPA increased to 18,759,465 shares, or approximately 19.4% of HOOKIPA's outstanding shares of Common Stock.

Unusual Options Activity Wed 8/2/23

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• CRWD Aug 160 calls are seeing interest with the underlying down 7% (volume: 2410, open int: 690, implied vol: ~61%, prev day implied vol: 47%). Co is expected to report earnings late August.
  
• JNJ Aug 172.5 calls (volume: 23.2K, open int: 1090, implied vol: ~21%, prev day implied vol: 18%). Health Canada authorizes TECVAYLI a First-in-class bispecific antibody for the treatment of patients with relapsed or refractory multiple myeloma. Co is scheduled to present at a conference on August 15. Co is expected to report earnings mid-October.
  

Bearish Put Activity:

• SQ Aug 72 puts are seeing interest with the underlying stock down 5% ahead of earnings tomorrow after the close (volume: 1920, open int: 260, implied vol: ~132%, prev day implied vol: 105%). 2K traded in a single transaction.
• GILD Aug 73 puts are seeing interest with the ahead of earnings tomorrow after the close  (volume: 2070, open int: 40, implied vol: ~54%, prev day implied vol: 47%).
  

Sentiment: The CBOE Put/Call ratio is currently: 0.84, VIX: (16.09, +2.16, +15.5%).
August 18 is options expiration -- the last day to trade August equity options.

-==Immunomedics (IMMU) to be acquired by Gilead (GILD) for $88.00 per share in cash

Gilead Sciences (GILD) and Immunomedics (IMMU) announced that the companies have entered into a definitive agreement pursuant to which Gilead will acquire Immunomedics for $88.00 per share in cash. The transaction, which values Immunomedics at approximately $21 billion, was unanimously approved by both the Gilead and Immunomedics Boards of Directors and is anticipated to close during the fourth quarter of 2020.

Under the terms of the merger agreement, a wholly-owned subsidiary of Gilead will promptly commence a tender offer to acquire all of the outstanding shares of Immunomedics' common stock. The $88.00 per share acquisition price represents a 108 percent premium to Immunomedics' closing price on September 11, 2020. Following successful completion of the tender offer, Gilead will acquire all remaining shares not tendered in the offer through a second step merger at the same price as the tender offer.

The consummation of the tender offer is subject to various conditions, including a minimum tender of at least a majority of outstanding Immunomedics shares, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

The tender offer is not subject to a financing condition and will be funded through approximately $15 billion in cash on hand, as well as approximately $6 billion in newly issued debt. Gilead expects to retain an investment grade credit rating following this transaction and this agreement does not alter Gilead's stated capital allocation strategy or its commitment to maintain and grow its dividend over time.

Jounce Therapeutics (JNCE) : licensing agreement with Gilead Sciences (GILD)

• Gilead Sciences (GILD) announced an agreement to exclusively license Jounce Therapeutics Inc.'s (JNCE) tumor-infiltrating T regulatory cells program. 
• Jounce said it plans to submit the antibody treatment to the Food and Drug Administration in the first half of next year. 

 

Gilead is paying $85 million upfront, making a $35 million investment if the deal closes, and allowing for up to $685 million in milestone payments. This is the latest in a handful of oncology deals that Gilead has engaged in 2020, including a $4.7 billion acquisition of Forty Seven Inc. and a $275 million stake in Pionyr Immunotherapeutics Inc.

However, Gilead's stock has struggled to regain momentum from its year-to-date high in April, when it reported the first batch of clinical data for its experimental COVID-19 drug remdesivir. Gilead's stock is up 2.7% for the year, while the S&P 500 (SPX) has gained 8.3% since the start of the year.

-=Gilead Sciences (GILD) receives a Complete Response Letter from the FDA for its Filgotinib drug

• Gilead teamed up with Galapagos (GLPG) on development of the investigational drug in 2015.
• Investors were counting on filgotinib becoming a blockbuster for Gilead and generating billions of dollars over the long run for Galapagos.

Gilead Sciences receives Complete Response Letter from FDA for Filgotinib

Co announced that the U.S. Food and Drug Administration (FDA) has issued a complete response letter for the New Drug Application (NDA) for filgotinib, an investigational treatment for moderately to severely active rheumatoid arthritis.

The FDA has requested data from the MANTA and MANTA-RAy studies before completing its review of the NDA. The MANTA and MANTA-RAy studies are designed to assess whether filgotinib has an impact on sperm parameters. The FDA also has expressed concerns regarding the overall benefit/risk profile of the filgotinib 200 mg dose.

The MANTA and MANTA-RAy studies are fully recruited, with topline results anticipated in the first half of 2021. Filgotinib is currently under review by regulatory authorities around the world. Filgotinib recently received a positive opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use, recommending marketing authorization for filgotinib in the EU for the treatment of adults with moderate to severe RA who have responded inadequately or are intolerant of one or more disease-modifying anti-rheumatic drugs.

Briefing note - Under the terms of the agreement with Gilead, Galapagos (GLPG) is entitled to an approval milestone of $100 million for the approval of filgotinib in the US, which was included in the Galapagos cash burn guidance. Following this CRL, Galapagos revises its full year 2020 operational cash burn guidance to between 490 and 520 million.

-=Forty Seven (FTSV) to be acquired by Gilead (GILD) for $95.50/share

Gilead (GILD) to acquire Forty Seven for $95.50/share in cash

Cos entered into a definitive agreement pursuant to which Gilead will acquire Forty Seven for $95.50/share in cash. The transaction, which values Forty Seven at approximately $4.9 billion, was unanimously approved by both the Gilead and Forty Seven Boards of Directors and is anticipated to close during the second quarter of 2020, subject to regulatory approvals and other customary closing conditions.

Under the terms of the merger agreement, a wholly-owned subsidiary of Gilead will promptly commence a tender offer to acquire all of the outstanding shares of Forty Seven's common stock at a price of $95.50 per share in cash. Following successful completion of the tender offer, Gilead will acquire all remaining shares not tendered in the offer through a second step merger at the same price as in the tender offer.

Consummation of the tender offer is subject to a minimum tender of at least a majority of outstanding Forty Seven shares plus Forty Seven shares underlying vested options, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

\Gilead plans to pay all cash consideration for the transaction. The tender offer is not subject to a financing condition.

=Agenus (AGEN) announces drug development deal with Gilead (GILD)

• Under the deal, Agenus will receive $150 million upon closing, including a $120 million upfront cash payment and $30 million in equities. Agenus will also receive up to about $1.7 billion in potential future fees and milestones.

Dec 20 (Reuters) - Gilead Sciences Inc has inked a collaboration agreement with Agenus Inc for the development and marketing of up to five novel immuno-oncology therapies.

Agenus will get an upfront cash payment of $120 million and a $30 million equity investment, and will also be eligible to receive about $1.7 billion in potential future fees and milestones, the companies said in a statement on Thursday.  

-=Gilead Sciences (GILD) reported earnings on Thur 26 Oct 2017 (a/h)

Gilead Sciences beats by $0.14, beats on revs, Raises low end of FY17 net product sales guidance

• Reports Q3 (Sep) earnings of $2.27 per share, $0.14 better than the Capital IQ Consensus of $2.13; revenues fell 13.2% year/year to $6.51 bln vs the $6.4 bln Capital IQ Consensus.
• HIV and HBV product sales were $3.6 billion compared to $3.5 billion for the same period in 2016.
• HCV product sales, which consist of Harvoni, Sovaldi, Epclusa and Vosevi were $2.2 billion compared to $3.3 billion for the same period in 2016.
• FY17 Outlook:Co raises low end of net product sales guidance, sees $24.5-$25.5 bln in net product sales vs. prior guidance of $24.0-$25.5 bln. Sees Non-GAAP gross margin of 86-87%, down from 86-88% prior guidance.  

=Kite Pharma (KITE) acquired by Gilead Sciences (GILD) for $180/share

Gilead Sciences (GILD) acquires Kite Pharma (KITE) for $180/share in cash, or approximately $11.9 bln. (8/28/17)

The deal will add the promising CAR-T candidate to Gilead's existing portfolio.
The acquisition was completed in October 2017.
In October 2017, Kite Pharma’s therapy, Yescarta (axicabtagene ciloleucel) became the first CAR-T therapy approved by the FDA for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy.

MIT Technology Review ranked Kite Pharma 7th in its annual list of 50 Smartest Companies 2017.

Gilead GILD) reported earnings on Tue 7 Feb 2017 (a/h)

** charts before earnings **

 

** charts after earnings **

 

• Gilead 2017 hepatitis C sales forecast disappoints

Feb 7 (Reuters) - Gilead Sciences Inc on Tuesday projected disappointing sales for its hepatitis C drugs this year because of fewer patients being started on treatments and more competition, sending its shares down more than 5 percent after hours.

The company forecast 2017 hepatitis C drug sales of $7.5 billion to $9 billion, much lower than the $12 billion Wall Street had expected.

"The 2017 guidance was $4-$5 billion lower than buyside expectations," said RBC Capital Markets analyst Michael Yee, adding that the sales outlook implies 2017 earnings for Gilead of $6.60-$9.00 per share, which is well below the average analyst estimate of $10.71 per share.

Gilead said around 231,000 U.S. patients were started on its hepatitis C drugs last year, but that will fall to around 160,000 in 2017 because of a combination of factors including a greater number of patients with less advanced disease and more patients with issues that favor delaying treatment, including alcohol dependency and unstable lifestyle.

A similar trend is expected in Europe and Japan.

"This market has been full of surprises," Gilead Chief Operating Officer Kevin Young said on a conference call. "It surprised us on the way up, and it is surprising us in some ways with the dynamics coming down."

Chief Executive Officer John Milligan acknowledged that the company has few prospects for new products over the next few years. "It makes it challenging for us to grow without an acquisition," he said.

Hepatitis C, estimated to infect about 3.2 million Americans, is a viral disease that causes inflammation of the liver that can lead to liver failure.

Direct-acting anti-virals, such as Gilead's Sovaldi and Harvoni, have revolutionized treatment, with cure rates of more than 90 percent shown in clinical trials.

But there was a backlash from health insurers and other payers when Gilead launched Sovaldi three years ago at a price of $84,000, or $1,000 per pill.

The company said Tuesday that its 2016 average net price for Harvoni was $15,000 per bottle of 28 pills, after discounts and rebates, compared with a $31,5000 list price. For Medicaid, the U.S. government program covering the poor and disabled, Gilead said its average price per bottle was less than $10,000.

Continued price pressure is expected as companies including AbbVie Inc launch new hepatitis C drugs.

For its other products, including HIV drugs, Gilead forecast 2017 sales of $15 billion to $15.5 billion, bringing its expected overall 2017 product sales to between $22.5 billion and $24.5 billion, compared with $30 billion in 2016.

Shares of the Foster City, California-based company were down more than 5 percent at $69.19 in after-hours trading on the Nasdaq.

Fourth-quarter net income fell to $3.1 billion from $4.7 billion a year earlier. Adjusting for one-time items, Gilead said it earned $2.70 a share in the quarter, compared with $3.32 a share a year earlier.

Quarterly sales of hepatitis C drugs Sovaldi, Harvoni and Epclusa totaled $3.2 billion, down from $4.9 billion.

GILD — is it a buy?

• 9/20/16:  $80.82  Is it a buy?

• One week later: