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A $2.5B all-cash acquisition that gave Gilead its entry into cardiovascular/pulmonary medicine via ambrisentan (Letairis) for pulmonary arterial hypertension. Letairis won FDA approval, though peak annual sales of roughly $600M left the returns well short of justifying the price tag.
PAH diversification play delivered modest returns well below $2.5B acquisition price
Full analysis, sources & comparables →Gilead acquired Myogen for $2.5B for pulmonary disease drugs.
Gilead Sciences to acquire Myogen for $2.5 billion completing the two-step acquisition through cash tender offer followed by cash merger in November 2006.
Gilead buys Myogen for $2.5 billion adding late-stage pulmonary arterial hypertension drug ambrisentan with orphan drug status in US and Europe.
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Gilead Sciences acquired Myogen Inc. for $52.50 per share (~$2.5 billion) in an all-cash tender offer, gaining ambrisentan (Letairis), an oral endothelin receptor antagonist for pulmonary arterial hypertension, and darusentan for resistant hypertension. The deal marked Gilead's entry into cardiovascular/pulmonary medicine.
30K US cases/yr · $2.0B Global PAH Market (2006)
Pulmonary arterial hypertension (PAH) is a rare, progressive condition with estimated US prevalence of 15-50 per million. Myogen was developing ambrisentan (later Letairis), a selective endothelin receptor antagonist, and darusentan for resistant hypertension. PAH treatment was an emerging specialty market in 2006.
Gilead's $2.5B acquisition of Myogen expanded its portfolio beyond HIV into cardiovascular disease. Ambrisentan was approved as Letairis in 2007 and grew to $1.6B peak sales. Darusentan failed in Phase III trials. The deal was part of Gilead's diversification strategy that also included the Corus Pharma acquisition for respiratory.
Gilead Sciences Inc. closes acquisition/merger of Myogen Inc. for $2.5B, establishing strategic position and initiating integration.
Gilead acquired Myogen for $2.5B gaining Letairis for PAH which achieved FDA approval but only ~$600M peak annual sales, a financially disappointing outcome.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Gilead Sciences Inc. / Myogen Inc. (this deal) | 2006 | $2.5B | 62 |
| Gilead Sciences Inc. / Pharmasset Inc. | 2011 | $11.2B | 98 |
| Gilead Sciences Inc. / Triangle Pharmaceuticals Inc. | 2002 | $464M | 96 |
| Gilead Sciences Inc. / CymaBay Therapeutics | 2024 | $4.4B | 76 |
| Gilead Sciences Inc. / Nurix Therapeutics Inc. | 2019 | $2.3B | 69 |
| Gilead Sciences Inc. / Immunomedics Inc. | 2020 | $21.0B | 68 |
| Gilead Sciences Inc. / Kite Pharma, Inc. | 2017 | $11.9B | 67 |
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More: 2006 deals · Gilead Sciences Inc. deals · Cardiovascular deals