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Gilead Sciences' Acquisition Of Forty Seven Was A Wise Move, CD47 Space Is Key Future Cancer Target

Mar. 09, 2020 11:43 AM ETGilead Sciences, Inc. (GILD)ABBV, FTSV9 Comments


  • Gilead Sciences paid $4.8 billion to acquire Forty Seven for its anti-CD47 drug magrolimab.
  • Magrolimab is an anti-CD47 drug and is responsible for eliminating the CD47 "don't eat me" signal that cancer cells have to avoid detection from macrophages.
  • HIV sales continue to climb, especially with Biktarvy as volume continues to build and is helping Gilead's revenue grow.
  • A potential readout of data for remdesivir against COVID-19 this month could be a major catalyst for the stock.
  • I do much more than just articles at Biotech Analysis Central: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »

Gilead Sciences (NASDAQ:GILD) acquired Forty Seven Inc. (FTSV) and paid a total of $4.8 billion to do so. Gilead has continued to do well when it comes to its HIV franchise, but faced significant challenges in other areas like its NASH pipeline. I believe that buying Forty Seven was a smart move that will definitely drive growth for the company. That's because the CD47 "don't eat me" space is starting to heat up with several biotechs exploring the very same space. The best part of all is that Forty Seven was the most advanced in terms of being close to late-stage studies with its CD47 drug magrolimab. The acquisition should eventually pay off and that's why I believe that Gilead is a good buy.

Acquisition Looks To Add Significant Value In Cancer Treatment Space

Gilead Sciences paid $4.9 billion or $95.50 per share in cash to acquire Forty Seven. This deal was unanimously approved by the boards of both companies and is expected to close during Q2 of 2020. Why was it a good idea for Gilead to buy Forty Seven? It all boils down to the CD47 "Don't eat me" inhibitor cancer space. Forty Seven was working with its key drug magrolimab, which is an anti-CD47 monoclonal antibody. The thing is that cancer cells have a CD47 "Don't eat me" signal on them. That allows them to avoid the immune system and not be detected. Cancer cells also have an "eat me" signal on their surface. However, the "don't eat me" signal overshadows the "eat me" signal and thus cancer cells avoid detection.

This is where magrolimab comes in and inhibits the CD47 "don't eat me" signal. When that happens, cancer cells can't avoid the macrophages roaming about. In turn, macrophages perform phagocytosis (swallowing of the cancer cells whole) to eliminate them. Having said that, Forty seven posted

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Terry Chrisomalis is a private investor in the Biotech sector with years of experience utilizing his Applied Science background to generate long term value from Healthcare.

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Comments (9)

happyguy profile picture
I'm sensing something good should be coming soon as I think GILD has a potential and bright future.
Increasing good indication that Remdesivir will be an effective anti viral drug as Pentagon has already made a decision to use this drug for US Troops 3/11/20 news.....


WASHINGTON - The U.S. Army Medical Research and Development Command announced that remdesivir, invented by the California-based Gilead Sciences, will be made available to all U.S. military personnel and their families who might get sick from the novel coronavirus.
i like how every time a stock do well, the next day people give praise, when it crashes, people give criticism.
CaptainSolo profile picture
GILD is just a smart company. Filgotinib will be a billion dollar blockbuster.
ckarabin profile picture
Like all pharmaceutical research you are buying lotto tickets and most don't pay off. But buy enough tickets and you do win the pharma lotto. While some like to discredit Gilead R&D projects because they aren't sure things, eventually GILD will have a few tickets to cash and the paydays will be large.
A bad shooter shoots with a machine gun.
Dam right.
ProfessorSmatt profile picture
Buy on the dips!!
News will come out and all questions will be answered.
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