Kite Pharma Inc (NASDAQ: KITE) is having an overwhelmingly strong time in the pre-market hours this morning, and for good reason. The company announced that it is being acquired in one of the biggest acquisitions thus far this year. Of course, this is leading to gains as excited investors head into the frenzy. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:37), KITE is trading at $139.10 per share after a gain of $40.60 per share or 29.19% thus far today.
KITE Gains On Acquisition News
As mentioned above, Kite Pharma is having an incredibly strong time in the pre-market after the company announced that it will be acquired. Early this morning, it was announced that the company has signed an acquisition agreement with Gilead Sciences, under which, Gilead Sciences will pay $180 per share to acquire the company. That brings the total value of the acquisition to $11.9 billion, representing a 30% premium over the KITE closing price on Friday. In a statement, John Milligan, CEO at Gilead Sciences, had the following to offer with regard to the acquisition of KITE…
“The acquisition of Kite establishes Gilead as a leader in cellular therapy and provides a foundation from which to drive continued innovation for people with advanced cancers. We are greatly impressed with the Kite team and what they have accomplished, and share their belief that cell therapy will become the cornerstone of treating cancer. Our similar cultures and histories of driving rapid innovation in order to bring more effective and safer products to as many patients as possible make this an excellent strategic fit.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on KITE. In particular, we’ll be watching the acquisition to see if it hits any bumps in the road. We’re also interested in following GILD after the acquisition to see how the company takes advantage of the incredible assets it brings on board through the move. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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