Forty Seven Inc (NASDAQ: FTSV) made gains in Friday’s session and closed the day with gains of 18.88%. This came after Gilead expressed interest in buying out the company. The deal has since been confirmed with Gilead Sciences announcing that it had entered into an agreement that will see it buy Forty Seven Inc at $95.50 per share.
The deal between the two companies gives Forty Seven Inc a valuation of $4.9 billion. Gilead also announced that the deal had been unanimously approved by the boards of both companies. It is expected to be closed in Q2 of 2020 upon approval by the relevant bodies.
Gilead announced that the acquisition will strengthen its research and development through access to Maglolimab. This is Forty Seven’s monoclonal antibody that is in clinical development for treating several types of cancer that include Myelodysplastic Syndrome, Acute Myeloid Leukemia and diffuse large B-cell lymphoma. So far it has been given to 400 patients in clinical trials.
Commenting on the buyout deal, Forty Seven Inc CEO Mark McCamish stated that the buyout was a great day for patients who may benefit from CD-47 therapies in the future. He added that the company was happy to join hands with Gilead and that by combining their scientific expertise, they are better positioned to develop treatments that alter the immune system, and deliver therapies much quicker.
On his part, Gilead CEO Daniel O’Day stated that the buyout agreement was a buildup on Gilead’s growing presence in the immune-oncology space. He further stated that, Maglolimab was complementary to the company’s hematology projects.
From its price action, FTSV rallied after the buyout news. It opened the day at $58.35 and traded between a low of $54.37 and a high of $65 before closing the day at $58. Volumes in the day stood at 3.17 million.
About Forty Seven Inc
Forty Seven Inc is an immune-oncology company that develops cancer treatments. It is based in Menio Park, California.