Gilead Shares Move Higher After FDA Approves its Cancer Drug

Gilead made an excellent move acquiring Kite Pharma because a drug that Kite developed has just been approved by the U.S. FDA.

It was on Wednesday that the FDA gave the green light to a new therapy to treat a type of lymphoma called Yescarta.

The drug will be priced at $373,000 for one administration to each patient. The therapy is for adults who are battling large B-cell lymphoma, which is a type of non-Hodgkin lymphoma, who have failed to respond to other treatments.

It was roughly two weeks ago that Gilead closed on its transaction for Kite, so this is already a great start for the company.

It was back in August that Gilead announced it would be acquiring Kite in a deal valued at around $12 million.

It was also in August, ironically two days after Gilead’s announcement, that Novartis’ Kymriah, another cancer therapy drug, was approved by the FDA. That therapy has a price tag of $475,000 but Novartis has said it would only charge patients if they respond to the treatment within a month.

Gilead has not made any statements saying it would do the same thing.

Both drugs are chimeric antigen receptor T-cell therapies known as CAR-Ts that reprogram a patient’s body in fighting the cancer by using their own immune cells to recognize and attack malignant cells.

According to Jefferies analyst Michael Yee, Yescarta could generate sales of up to $250 million next year.

Disclaimer: We have no position in Gilead Sciences, Inc. (NASDAQ: GILD) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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