Gilead Sciences, Inc. (NASDAQ:GILD) and Galapagos NV (ADR) (NASDAQ:GLPG) announced the closing and entry into force of their global license and collaboration agreement on filgotinib.
Under the terms of the agreement, the closing of this transaction triggers an upfront license fee payment of $300 million by Gilead to Galapagos. In addition, Gilead has made a $425 million (or €392 million) equity investment in Galapagos by subscribing for new shares at a price of €58 per share, including issuance premium. As a result, Gilead now owns 6,760,701 ordinary shares of Galapagos, representing 14.75 percent of the currently outstanding share capital of Galapagos.
In accordance with Belgian transparency legislation1, Galapagos notes that its total share capital currently amounts to €247,964,249.63; the total number of securities conferring voting rights is 45,837,043, which is also the total number of voting rights (the “denominator”), and all securities conferring voting rights and all voting rights are of the same category. The total number of rights (warrants) to subscribe to not yet issued securities conferring voting rights is 2,805,692, which equals the total number of voting rights that may result from the exercise of these warrants (but excludes the 700,000 warrants of Warrant Plan 2015 (B) and Warrant Plan 2015 RMV which were created on 21 December 2015, subject to acceptances). Galapagos does not have any convertible bonds or shares without voting rights outstanding. (Original Source)
Shares of Gilead Sciences closed today at $89.90, down $1.94 or -2.11%. GILD has a 1-year high of $123.37 and a 1-year low of $86. The stock’s 50-day moving average is $100.60 and its 200-day moving average is $106.06.
On the ratings front, Gilead Sciences has been the subject of a number of recent research reports. In a report released today, Credit Suisse analyst Ravi Mehrotra assigned a Buy rating on GILD, with a price target of $125, which implies an upside of 39.0% from current levels. Separately, on January 15, Merrill Lynch’s Ying Huang upgraded the stock to Hold and has a price target of $107.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ravi Mehrotra and Ying Huang have a total average return of 48.1% and 19.8% respectively. Mehrotra has a success rate of 76.7% and is ranked #25 out of 3582 analysts, while Huang has a success rate of 74.0% and is ranked #90.
Overall, 2 research analysts have 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 $121.00 which is 34.6% above where the stock opened today.