Gilead to Pay $510 Million for YM BioSciences

Gilead Sciences Inc. (NASDAQ:GILD) and YM BioSciences Inc. (TSX:YM,AMEX:YMI) announced that Gilead will acquire YM for $2.95 per share using cash on hand. That amount places YM’s value at US$510 million.

As quoted in the press release:

YM’s lead drug candidate, CYT387, is an orally-administered, once-daily, selective inhibitor of the Janus kinase (JAK) family, specifically JAK1 and JAK2.  The JAK enzymes have been implicated in a number of disorders including myeloproliferative diseases, inflammatory disorders and certain cancers.  YM has reported positive results from a Phase 1/2 clinical trial of CYT387 in 166 patients with myelofibrosis, a life-threatening myeloproliferative disease.

Norbert W. Bischofberger, chief scientific officer and executive vice president of research and development at Gilead, commented:

This acquisition represents an opportunity to add a complementary clinical program in the area of hematologic cancers to our growing oncology portfolio. Based on promising Phase 2 data, we believe CYT387 could provide important clinical benefit for patients with myelofibrosis, including potential improvements with regard to anemia and decreased dependence on blood transfusions.  We look forward to advancing CYT387 into a Phase 3 study as quickly as possible and to exploring its potential in other myeloproliferative diseases with significant unmet medical need.

Click here to read the full Gilead Sciences Inc. (NASDAQ:GILD) and YM BioSciences Inc. (TSX:YM,AMEX:YMI) press release.