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Money News

Gilead to Purchase Cancer Drug Maker Kite Pharma in $12B Deal

September 01, 2017

2 min read

Pharmaceutical companies are some of the most innovative businesses around, spending billions of dollars each year to develop new drugs and treatments for the diseases that afflict people around the globe.

That’s one reason you may want to pay attention to drug company Gilead Sciences, which announced on Monday that it will purchase Kite Pharma, in a deal worth nearly $12 billion.

Kite, based in Santa Monica, California, produces an immunotherapy drug that reportedly stimulates the body to fight cancer with its own cells.

Why is this a big deal?

“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,” Gilead chief executive officer John Milligan said in press release on Monday.

Key Takeaways: Gilead is one of the largest drug manufacturers in the world, and it’s developed critical drugs to fight HIV, hepatitis B and C, and influenza. Its multi-billion dollar purchase of Kite is a significant bet on new advances in fighting cancer, as well as a further demonstration of the strength of the pharmaceutical industry in recent months.

Want to learn more about investing in healthcare?

Check out the Modern Meds and Live Long and Prosper ETFs on Stash.

By Jeremy Quittner
Jeremy Quittner is the financial writer for Stash.

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