Gilead Sciences Inc. (NYSE:GILD) saw its shares rise in pre-market trading on news it is to acquire privately held cellular therapy company Cell Design Labs Inc. for up to US$567mln.
The biopharma company said it will make an initial upfront payment to Cell Design of about US$175mln and additional payments of up to US$322mln upon meeting certain milestones.
The transaction includes acquiring a 12.2% stake in Cell Design held by Kite Pharma Inc, which Gilead bought earlier this year to diversify from its hepatitis C portfolio
California-based Cell Design’s pipeline includes early stage treatments for prostate cancer and a type of blood cancer.
In pre-market trading, Gilead shares were up 0.5% to $73.09.