Pharma BD Deal Intelligence
Gilead paid ~$510M for momelotinib (CYT387) to challenge Incyte's Jakafi in myelofibrosis, but mixed Phase 3 results led it to shelve the drug and sell it back for just $3M. Momelotinib later succeeded as Ojjaara — under Sierra Oncology and GSK, not Gilead.
Gilead to acquire YM BioSciences for ~$510 million, gaining CYT387, a once-daily selective JAK1/JAK2 inhibitor with positive Phase 1/2 myelofibrosis data,…
Gilead paid $510M for momelotinib via YM BioSciences and divested it for just $3M upfront after Phase 3 trials underwhelmed, illustrating one of Gilead's…
Momelotinib is profiled as one of pharma's biggest dropped-drug comebacks: Gilead paid $510M to acquire YM BioSciences, abandoned the asset, then watched…
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Gilead tender offer at C$2.95/share cash (~$510M) for YM BioSciences. Acquired CYT387 (momelotinib), JAK1/JAK2 inhibitor for myelofibrosis with positive Phase 1/2 data in 166 patients. Phase 3 planned for H2 2013.
Assessment window: 5yr post-close.
$1.7B US myelofibrosis market 2024 (Jakafi-led)
Myelofibrosis is a rare clonal myeloproliferative neoplasm characterized by bone-marrow fibrosis, splenomegaly, cytopenias, and constitutional symptoms; transfusion-dependent anemia drives disability and worsens prognosis.
When the YM BioSciences acquisition closed in February 2013, Jakafi (ruxolitinib, Incyte) was the only approved JAK inhibitor for myelofibrosis. Pipeline competitors included Sanofi's fedratinib (acquired from TargeGen) and CTI BioPharma's pacritinib. Momelotinib's differentiation rested on improving anemia and reducing transfusion burden — a clinically meaningful gap left by Jakafi. Gilead's Q1 2013 financial results confirmed closing of the ~$510M deal. However Phase 3 SIMPLIFY-1/-2 (2016) missed the symptom-response endpoint and Gilead divested the program to Sierra Oncology in 2018 for $3M upfront plus milestones. Sierra's MOMENTUM trial (2022) reversed course, leading to GSK's $1.9B Sierra acquisition and FDA approval of momelotinib (Ojjaara) in 2023. The original Gilead deal is now widely viewed as a costly bet that paid off only after divestiture.
$1.7B US myelofibrosis market 2024 (Jakafi-led)
Myelofibrosis is a rare bone-marrow cancer in which fibrosis crowds out normal hematopoiesis, producing splenomegaly, cytopenias (especially anemia requiring transfusions), and constitutional symptoms. Median survival in higher-risk disease is roughly 5 years and treatment options at deal time were limited largely to ruxolitinib (Jakafi) and stem-cell transplant.
At deal time (December 2012), the myelofibrosis market was a Jakafi (ruxolitinib, Incyte/Novartis) monopoly following its November 2011 FDA approval. Jakafi reduced spleen volume and symptoms but worsened anemia. CYT387 (momelotinib) differentiated on anemia, with Phase 1/2 data in 166 patients showing transfusion independence in a meaningful subset, the rationale Gilead cited in its acquisition of YM BioSciences. Other clinical-stage competitors at the time included Sanofi/TargeGen's fedratinib (later Inrebic) and CTI/Baxter's pacritinib. The deal positioned Gilead to build its first MPN franchise and challenge Jakafi on transfusion-dependent patients. Ultimately the SIMPLIFY-1/-2 Phase 3 trials (2016) missed total symptom score endpoints, Gilead deprioritized the program, and divested the asset to Sierra Oncology in 2018 for $3M upfront. Momelotinib (Ojjaara) was later approved by FDA in 2023 under GSK ownership.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Gilead Sciences Inc. / YM BioSciences Inc. (this deal) | 2012 | $510M | 17 |
| 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: 2012 deals · Gilead Sciences Inc. deals · Hematology deals