Author photo
By
TOMI
KILGORE
REPORTER AND EDITOR
Shares of Forty Seven Inc. FTSV, +61.09% shot up 61% in premarket trading Monday, after the immuno-oncology company agreed to be acquired by Gilead Sciences Inc. GILD, +1.36% in a cash deal valued at $4.9 billion. Under terms of the deal, Gilead will pay $95.50 for each Forty Seven share outstanding, a 64.7% premium to Friday's closing price of $58.00. Gilead's stock rose 1.4% ahead of the open. Forty Seven's magrolimab has been granted Fast Track designation by the U.S. Food and Drug Administration for the treatment of MDS and AMLin patients with MDS and AML, and additional studies are ongoing in non-Hodgkin lymphoma and solid tumors. The deal is expected to close in the second quarter of 2020. "Magrolimab complements our existing work in hematology, adding a non-cell therapy program that complements Kite's pipeline of cell therapies for hematological cancers," said Daniel O'Day, chief executive of Gilead. Forty Seven's stock run up more than 4-fold (up 348%) over the past three months through Friday and Gilead shares have gained 4.9%, while the S&P 500 SPX, -0.82% has lost 5.1%.