![]() ![]() “It’s important that they keep that together,” he said.īiren Amin, an equity analyst at Jefferies, said Gilead was unlikely to make a change to Kite Pharma’s operations with FDA approval of its treatment “right around the corner.” “That manufacturing in L.A., that marketing team, I think is really, really critical in the process, especially when they’re about to launch in this area,” said Tony Butler, an analyst at Guggenheim Securities. “This is a growth area, and we anticipate we will increase the number of employees at Kite.”Īnalysts said it made sense for Gilead to keep and even expand Kite Pharma’s Los Angeles-area operations. “The transaction is not about financial synergies or cost savings,” she said. Gilead was impressed with Kite Pharma’s team and plans to keep investing in its operations, said Gilead spokeswoman Amy Flood. Kite Pharma has about 600 employees at the two facilities combined, company spokeswoman Christine Cassiano said. Manufacturing of Kite Pharma’s treatment is to continue at the facility in El Segundo. Kite Pharma’s research and development, as well as commercialization operations, are to remain in Santa Monica. Gilead has developed top-selling treatments for HIV and the liver-destroying hepatitis C virus, but leaders of the biotechnology company told analysts Monday that its push into oncology has been largely nascent so far. The boards of both companies have approved the deal, and it’s expected to close by the end of the year. The shares got a significant boost after a study of the company’s gene therapy reported positive results. ![]() Since the start of the year, Kite Pharma’s stock price has nearly quadrupled. Kite Pharma stock leaped 28% to $178.05 on Monday. Gilead is to pay $180 in cash for each share of Kite Pharma, a 29% premium over the Friday closing price. But he told analysts on a conference call that “I certainly think this innovation will support very healthy reimbursement.” Kevin Young, Gilead’s chief operating officer, would not say Monday what the treatment would cost. The costs to patients and providers could cause problems for Gilead, which has come under fire for the high price of its drugs. Cell therapy, like many cancer treatments, is expected to be expensive. ![]()
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