YM BioSciences (YMI) says its buyout by a wholly owned subsidiary of Gilead Sciences (GILD +0.8%) has been endorsed by proxy advisory firms Institutional Investor Services and Glass, Lewis & Co. ISI says the all-cash deal offers a satisfactory premium, while Glass Lewis also notes that the YMI board of directors conducted a reasonable review of strategic alternatives available to the company prior to entering into the proposed agreement.
Gilead Sciences (GILD +0.4%) agrees to acquire YM BioSciences (YMI) for $510M, with the $2.95/share offer representing an 81% premium to the latter's close of $1.63 yesterday. With the deal, Gilead will gain access to YM's blood and immune cell disorder drugs. Its lead drug candidate is CYT387 for treating myelofibrosis, a progressive, chronic bone marrow disease. YM shares sky 78%. (PR)
YM Biosciences (YMI +6.3%) gets a boost from postitive comments out of Wells Fargo this morning, saying that recent weakness has created a buying a opportunity in the stock. Wells believes investors are failing to recognize the potential of the company's lead drug as both a treatment for myelofibrosis as well as other applications.
Shares of YM Biosciences (YMI +16.1%) fall back to earth a bit after surging over 20% in AH and premarket trading on positive results on testing of its CYT387 drug. Rodman & Renshaw's Reni Benjamin says the big takeaway from the data is that it meets the threshold of attracting interest from other companies looking to partner.
YM BioSciences (YMI) surges 21.9% AH after reporting positive results for the Phase I/II study of its CYT387 drug for treating myleofibrosis, both with regards to efficacy and safety. The company hopes to start "pivotal trials" for the drug in mid-2012.