Wells Fargo analyst Mohit Bansal thinks Gilead’s acquisition of CymaBay (CBAY) makes sense as it is in Gilead’s “wheelhouse and could give quick accretion.” The primary biliary cholangitis opportunity could be $2B-$4B peak in the U.S. alone, and the consensus is modeling $1.6B in 2032 sales for Cymabay’s Seladelpar, which looks beat-in-class, the analyst tells investors in a research note. Using peak sales, the deal does not look expensive at 2.5-times peak revenue and a “clinically derisked” asset, contends Wells. The firm keeps an Equal Weight rating on Gilead with an $84 price target.
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