Company Update (NASDAQ:GILD): Gilead Sciences, Inc. and Galapagos Cleared by U.S. Federal Trade Commission to Close Global Partnership on Filgotinib
Gilead Sciences, Inc.(NASDAQ:GILD) and Galapagos NV (NASDAQ:GLPG) announced that the U.S. Federal Trade Commission provided early termination of the waiting period for the global partnership agreement on filgotinib under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The deal is expected to close by the end of the month.
Upon closing, Galapagos will receive an upfront license fee of $300 million and Gilead will make a $425 million equity investment in Galapagos by subscribing for shares at a price of €58 per share. After the issuance of the shares, Gilead will own approximately 15 percent of the outstanding share capital of Galapagos, depending on the $/€ exchange rate at closing. (Original Source)
Shares of Gilead Sciences closed yesterday at $97.10. GILD has a 1-year high of $123.37 and a 1-year low of $86. The stock’s 50-day moving average is $101.92 and its 200-day moving average is $106.61.
On the ratings front, Gilead has been the subject of a number of recent research reports. In a report issued on January 11, J.P. Morgan analyst Cory Kasimov reiterated a Buy rating on GILD, with a price target of $133, which implies an upside of 37.0% from current levels. Separately, on January 7, Piper Jaffray’s Joshua Schimmer reiterated a Buy rating on the stock and has a price target of $134.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Cory Kasimov and Joshua Schimmer have a total average return of -10.9% and -13.7% respectively. Kasimov has a success rate of 26.0% and is ranked #3549 out of 3609 analysts, while Schimmer has a success rate of 20.7% and is ranked #3593.
Overall, one research analyst has assigned a Hold rating and 9 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $125.80 which is 29.6% above where the stock closed yesterday.