S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Health and Healthcare

Gilead Wins CV Therapeutics Bid; Higher Bid Coming? (GILD, CVTX)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

money-stack-image25Gilead Sciences, Inc. (Nasdaq: GILD) has agreed to buy CV Therapeutics, Inc. (Nasdaq: CVTX) for $20.00 per share in cash.

This deal is via a tender offer and second step merger.  The board has agreed to recommend to its stockholders to tender their shares.  This is interesting because CV’s board had fought off a $16.00 buyout from Astellas.

The transaction is valued at approximately $1.4 billion.  Gilead believes it will be dilutive to 2009 earnings, will be neutral or accretive to 2010 earnings, and will be accretive to earnings in 2011 and beyond.

CV Therapeutics focuses on the development of small molecule drugs for the treatment of cardiovascular diseases. In 2008, its Ranexa and Lexiscan contributed to total revenue of $154.5 million.   It also has a pipeline which includes multiple product candidates in evaluation stages for the treatment of atrial fibrillation, pulmonary diseases and diabetes.

The tender is subject to to a majority tender of holders and to regulatory approval.  These should go through.  Where this gets really interesting is that the stock is trading up at $20.40 in pre-market trading.  Some are wondering if Astellas will come knocking on the door again.

JON C. OGG

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Are Audentes Shareholders Getting Enough in the Acquisition?
Chris Lange |

Are Audentes Shareholders Getting Enough in the Acquisition?

Audentes Therapeutics shares more than doubled on Tuesday after the firm announced that it would be acquired by Astellas. Although…
Trey Thoelcke |

UBS Says Buy Top Biotech Stocks in Front of Earnings for Big Upside

Like many firms on Wall Street, the biotechnology team at UBS thinks that most of the top mega-cap and large…
Sanofi Moves to Acquire Bioverativ
Chris Lange |

Sanofi Moves to Acquire Bioverativ

Bioverativ is adding to Monday’s M&A news after it was announced that Sanofi would be acquiring the firm.
Why the 5 Highest-Yielding Nasdaq Stocks Could Rip Higher With the Red-Hot Summer Rally
Lee Jackson |

Why the 5 Highest-Yielding Nasdaq Stocks Could Rip Higher With the Red-Hot Summer Rally

The highest-yielding stocks in the Nasdaq offer a contrarian angle for the rest of 2023. They all have some solid…
What Eli Lilly Gets From Its Most Recent Acquisition
Chris Lange |

What Eli Lilly Gets From Its Most Recent Acquisition

Prevail Therapeutics shares absolutely exploded on Tuesday morning after it was announced that the company would be acquired by Eli…
Biotech Has Been Crushed: 5 Stocks to Buy Now That Pay Big Dividends
Lee Jackson |

Biotech Has Been Crushed: 5 Stocks to Buy Now That Pay Big Dividends

Shares of five top established and mature biotechnology and pharmaceutical companies have been hit hard and are offering some of…
Why Jefferies Sees 3 Big Biotechs Having Key Upside Catalysts Coming
Lee Jackson |

Why Jefferies Sees 3 Big Biotechs Having Key Upside Catalysts Coming

Investors are now focusing on fundamentals and near-term catalysts that could provide a tailwind for some of the biotech leaders.
Lee Jackson |

Top Biotechs Set to Win in the War on Cancer

ThinkstockTuesday saw the wrap up of the 2013 European Society of Medical Oncology (ESMO) conference in Amsterdam, which featured key…
2 Large Cap Biotech Leaders Pay Big Dividends and Have Huge Upside Potential
Lee Jackson |

2 Large Cap Biotech Leaders Pay Big Dividends and Have Huge Upside Potential

While not suited for conservative income investors, these two top biotech stocks could have huge total return potential and offer…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618