Gilead Sciences to acquire Kite Pharma for $11.9bn

Gilead Sciences is to acquire Kite Pharma for $11.9 billion, after the deal was unanimously approved by both companies’ boards of directors.

The deal is expected to be completed by the fourth quarter of 2017.

Kite has a focus on cell therapy, which uses a patient’s own immune cells to fight cancer. Its most advanced therapy candidate, axicabtagene ciloeucel (axi-cel), is a CAR T therapy which is currently under review by the US Food and Drug Administration (FDA).

Axi-cel is set to be the first treatment for refractory aggressive non-Hodgkin lymphoma.

John Milligan, Gilead’s CEO, said the acquisition establishes Gilead as a leader in cellular therapy, adding that Gilead is impressed with the Kite team and shares the same belief that cell therapy will be the cornerstone of treating cancer.

Milligan added: “Our similar cultures and histories of driving rapid innovation in order to bring more effective and safer products to as many patients as possible make this an excellent strategic fit.”

Kite’s research and development team will remain in Santa Monica, California, with product manufacturing staying in El Segundo, California.

Arie Belldegrun, CEO of Kite, believes the acquisition to be a strong move for Kite as Gilead is seen as an innovative company which shares Kite’s desire for developing therapies for patients.

Belldegrun added: “CAR T has the potential to become one of the most powerful anti-cancer agents for hematologic cancers. With Gilead’s expertise and support, we hope to fulfil that potential by rapidly accelerating our robust pipeline and next-generation research.”