Pharma BD Deal Intelligence

OSI Pharmaceuticals / Gilead Sciences (oncology assets)

2001 · Acquisition/Merger · $200M · Complete

WRONG BY 32 POINTS

The three acquired oncology drug candidates all failed to show clinical efficacy; the only lasting value was the Boulder talent base OSI later leaned on for Tarceva, before shuttering the site in 2009.

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The coverage arc

Jun 13, 2001 Gilead Sciences Neutral

Gilead announced sale of its Boulder oncology pipeline and operations to OSI for up to $200M ($130M cash + $40M stock at close + up to $30M in…

Dec 21, 2001 Gilead Sciences Bullish

Closing announcement: OSI paid $130M cash + 924,984 shares; acquired three next-generation cytotoxic candidates plus Gilead's Boulder R&D site. Lead asset…

Apr 01, 2004 PubMed (peer-reviewed Phase II results) Bearish

Phase II of OSI-211 (liposomal lurtotecan) in topotecan-resistant ovarian cancer reported limited single-agent activity, foreshadowing the eventual…

Source summaries from our enrichment pipeline; follow links for originals.

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Asset purchase: $130M cash + $40M OSI stock + up to $30M milestones (NX211). Acquired Gilead's Boulder oncology pipeline/site. Up to $200M total.

Did it work? Outcome assessment

The three acquired oncology drug candidates all failed to show clinical efficacy; the only lasting value was the Boulder talent base OSI later leaned on for Tarceva, before shuttering the site in 2009.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
OSI Pharmaceuticals / Gilead Sciences (oncology assets) (this deal)2001$200M28
OSI Pharmaceuticals / EyeTech Pharmaceuticals Inc.2005$935M10
Abbott Laboratories / Knoll Pharmaceutical Company (BASF Pharma)2001$6.9B100
Vertex Pharmaceuticals Incorporated / Aurora Biosciences Corporation2001$592M95
Amgen Inc. / Immunex Corporation2001$16.0B91
Swedish Orphan Biovitrum AB / Biovitrum2001$493M84
Barr Laboratories Inc. / Duramed Pharmaceuticals Inc.2001$589M82

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