Re: Can Doug and Gilmore use $7 billion - right now?
That Barron's article is pretty good.
"Instead of embarking on a pharmaceutical megamerger, of the sort Barron’s has argued against, Daniel O’Day, Gilead’s new CEO, signed a 10-year deal with longtime collaborator Galapagos (ticker: GLPG) to boost his company’s pipeline of potential treatments.
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“I firmly believe [in] the concept that we’ve come up with, the concept of enabling Galapagos with a significant capital infusion for them to further invest in that research and at the same time keeping their independence as a premier European biotech company that allows them to recruit the very best talent, make their own decision and progress programs according to their judgment,” O’Day said on a conference call about the deal.
The back story. Gilead (GILD) and Galapagos have had a long courtship. Gilead signed a $2 billion deal with Galapagos in 2015, codeveloping an experimental rheumatoid-arthritis drug called filgotinib. Before the new deal, Gilead had a 12.3% ownership stake in Galapagos. The current agreement will increase that stake to 22%.