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Gilead Sciences Inc (GILD) Said To Be Eyeing Arrowhead Research Corp
Gilead is reportedly looking to acquire Arrowhead Research, primarily because of the latter company’s hepatitis B pipeline consisting of experimental drugs such as ARC-520
By: Hannah Ishmael
Published: Dec 31, 2014 at 6:23 am EST
Gilead Sciences, Inc. (NASDAQ:GILD) is eyeing Arrowhead Research Corp (NASDAQ:ARWR) for an acquisition, sending a strong signal to the market about the company's resilience to the recent thrashing by buying out a small cap, as per rumors on the Street.
California-based Arrowhead has many promising products in its pipeline, including ARC-520, an experimental drug that is being tested for its efficacy in treating chronic hepatitis B. The biopharmaceutical is also working on an anti-obesity drug candidate.
News of Gilead's interest in the small cap sent the company's stock soaring 14.5% to $7.57, as 11.7 million shares of the company changed hands, up from an average 30-day trading volume of 2.23 million.
Arrowhead has gone through some rough months as its stock price plummeted. Investors grew pessimistic from October onward, after the company released unfavorable early data pertaining to an ongoing Phase II study of its RNA interference-based drug designed to treat the hepatitis B infection. The weaker-than-expected data prompted a handful of law firms to file lawsuits against the company on behalf of Arrowhead's investors, alleging that the company misguided the investors about the potency of the experimental drug.
Arrowhead CEO Christopher Anzalone, however, is not perturbed and remains upbeat about the technology the company is developing in Madison, Wisconsin. The CEO is of the opinion that the company’s investments in research and development of the RNAi drug technology will pay off and create immense value for its shareholders.
Arrowhead, however, probably cannot afford too many setbacks when it comes to developing hepatitis B drugs, as the competition in the industry is heating up. Gilead has three drugs in its pipeline, including one in Phase III trials; however, none of them is an RNAi drug. Alnylam Pharmaceuticals (NASDAQ:ALNY) is one other company developing an RNAi drug for hepatitis B.
Gilead is sitting on a cash pile of $6.2 billion and hence can surely acquire Arrowhead in an attempt to boost its hepatitis B pipeline and eliminate potential competitive threats from the hepatitis B market. Hepatitis B is known to impact an estimated 5% of the total world’s population.
Explore more ARWR research by Bidness Etc
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发表于 2015-1-1 10:57
