InvestorQ : Why are Gilead of UK and Astra Zeneca looking at a pharma merger deal right now?
prachi Patwardhan made post

Why are Gilead of UK and Astra Zeneca looking at a pharma merger deal right now?

Answer
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3 months ago


AstraZeneca has actually approached Gilead for a possible merger. It may be recollected that Gilead of the US is better known for its Remdesivir drug for COVID-19. While merger may not be on the agenda for Gilead, a larger JV may on the cards. AstraZeneca has a market cap of $140 billion while Gilead is worth $96 billion. Gilead is best known as the creator of the drug that’s received U.S. approval for use with Coronavirus patients. In India, Gilead has licensed Cipla and Jubilant Life to manufacture Remdesivir to supply to COVID-19 patients. Gilead has seen a steady fall in sales in its Hepatitis C franchise and needs to reinvigorate its drug development pipeline. What makes Gilead valuable is that the total sales of Remdesivir are predicted closer to $7.7 billion in 2022. On the other hand, AstraZeneca is helping to manufacture a COVID-19 vaccine developed at the University of Oxford and the shot is expected to enter Phase III clinical trials in June. This deal is expected to extend much beyond the immediate challenge of COVID-19.