Form SC TO-C - Written communication relating to an issuer or third party
February 12 2024 - 4:14PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
TENDER OFFER STATEMENT UNDER SECTION 14(D)(1)
OR 13(E)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
CYMABAY THERAPEUTICS, INC.
(Name of Subject Company (Issuer))
PACIFIC MERGER SUB, INC.
a wholly owned subsidiary of
GILEAD SCIENCES, INC.
(Names of Filing Persons (Offeror))
Common Stock, Par Value $0.0001 Per Share
(Title of Class of Securities)
23257D103
(Cusip Number of Class of Securities)
Deborah H. Telman, Esq.
Executive Vice President, Corporate Affairs
and General Counsel
Gilead Sciences, Inc.
333 Lakeside Drive
Foster City, CA 94404
650-574-3000
(Name, Address and Telephone Number of Person Authorized
to
Receive Notices and Communications on Behalf of Filing Persons)
With copies to:
Paul S. Scrivano
Davis Polk & Wardwell LLP
1600 El Camino Real
Menlo Park, CA 94025
(650) 752-2008 |
Cheryl Chan
Davis Polk & Wardwell LLP
450 Lexington Avenue
New York, NY 10017
(212) 450-4503 |
CALCULATION OF FILING FEE
| Transaction Valuation* |
|
Amount of Filing Fee* |
| N/A |
|
N/A |
| * | A filing fee is not required in connection with this filing as it relates solely to preliminary communications made before the commencement
of the tender offer. |
| ☐ | Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
| Amount Previously Paid: |
Not applicable |
Filing Party: |
Not applicable |
| Form or Registration No.: |
Not applicable |
Date Filed: |
Not applicable |
| ☒ | Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. |
Check the appropriate boxes below to
designate any transactions to which the statement relates:
| ☒ | third-party tender offer subject to Rule 14d-1. |
| ☐ | issuer tender offer subject to Rule 13e-4. |
| ☐ | going-private transaction subject to Rule 13e-3. |
| ☐ | amendment to Schedule 13D under Rule 13d-2. |
Check the following box if the filing
is a final amendment reporting the results of the tender offer. ☐
This filing
relates solely to preliminary communications made before the commencement of a tender offer by Pacific Merger Sub, Inc., a Delaware corporation
(“Purchaser”) and a wholly owned subsidiary of Gilead Sciences, Inc., a Delaware corporation (“Parent”),
to acquire all of the outstanding shares of common stock of CymaBay Therapeutics, Inc., a Delaware corporation (the “Company”),
at a price of $32.50 per share, net to the seller in cash, without interest and subject to any withholding of taxes, pursuant to an Agreement
and Plan of Merger, dated February 11, 2024, among the Company, Parent and Purchaser.
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements related to Gilead
Sciences, Inc. (“Gilead”), CymaBay Therapeutics, Inc. (“CymaBay”) and the acquisition of CymaBay
by Gilead that are subject to risks, uncertainties and other factors. All statements other than statements of historical fact are statements
that could be deemed forward-looking statements, including all statements regarding the intent, belief or current expectation of Gilead
and CymaBay and members of their respective senior management teams. Forward-looking statements include, without limitation, statements
regarding the transaction and related matters, prospective performance and opportunities, post-closing operations and the outlook for
the companies’ businesses, including, without limitation, the ability of Gilead to advance CymaBay’s product pipeline and
successfully commercialize seladelpar; the possibility of unfavorable results from clinical trials; regulatory applications and related
timelines; filings and approvals relating to the transaction; the expected timing of the completion of the transaction; the ability to
complete the transaction considering the various closing conditions; difficulties or unanticipated expenses in connection with integrating
the companies; and any assumptions underlying any of the foregoing. Investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking
statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and
uncertainties that could cause the actual results to differ from expectations contemplated by forward-looking statements include: uncertainties
as to the timing of the tender offer and merger; uncertainties as to how many of CymaBay’s stockholders will tender their stock
in the offer; the possibility that competing offers will be made; the possibility that various closing conditions for the transaction
may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation
of the transaction; the effects of the transaction on relationships with employees, other business partners or governmental entities;
the difficulty of predicting the timing or outcome of regulatory approvals or actions, if any; the impact of competitive products and
pricing; other business effects, including the effects of industry, economic or political conditions outside of the companies’
control; transaction costs; actual or contingent liabilities; adverse impacts on business, operating results or financial condition in
the future due to pandemics, epidemics or outbreaks; and other risks and uncertainties detailed from time to time in the companies’
periodic reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including current reports on
Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, as well as the Schedule 14D-9 to be filed by CymaBay and the
Schedule TO and related tender offer documents to be filed by Gilead and Pacific Merger Sub, Inc., a wholly owned subsidiary of Gilead.
All forward-looking statements are based on information currently available to Gilead and CymaBay, and Gilead and CymaBay assume no obligation
and disclaim any intent to update any such forward-looking statements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
The tender offer described in this document has not yet commenced.
This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities
of CymaBay, nor is it a substitute for any tender offer materials that Gilead, Pacific Merger Sub, Inc. or CymaBay will file with the
SEC. A solicitation and an offer to buy securities of CymaBay will be made only pursuant to an offer to purchase and related materials
that Gilead intends to file with the SEC. At the time the tender offer is commenced, Gilead will file a Tender Offer Statement on Schedule
TO with the SEC, and CymaBay will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender
offer. CYMABAY’S STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE,
A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER
OFFER. The Offer to Purchase, the related letter of transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation
Statement on Schedule 14D-9, will be sent to all stockholders of CymaBay at no expense to them. The Tender Offer Statement on Schedule
TO, the Solicitation/Recommendation Statement on Schedule 14D-9 and other related documents will be made available for free at the SEC’s
web site at www.sec.gov. Additional copies may be obtained for free by contacting Gilead or CymaBay.
Free copies of these materials and certain other offering documents will be made available by Gilead by mail to Gilead Sciences, Inc.,
333 Lakeside Drive, Foster City, CA 94404, attention: Investor Relations, by phone at 1-800-GILEAD-5 or 1-650-574-3000, or by directing
requests for such materials to the information agent for the offer, which will be named in the Tender Offer Statement on Schedule TO.
Investors and security holders of CymaBay may also obtain, free of charge, the Solicitation/Recommendation Statement on Schedule 14D-9
and other related documents that CymaBay has filed with or furnished to the SEC under the “Investors & Media” section
of CymaBay’s website at www.cymabay.com/investors-media.
In addition to the Offer to Purchase, the related Letter of Transmittal
and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, Gilead and CymaBay file annual, quarterly
and current reports, proxy statements and other information with the SEC. Gilead’s and CymaBay’s filings with the SEC are
also available for free to the public from commercial document-retrieval services and at the website maintained by the SEC at www.sec.gov.
EXHIBIT INDEX
Exhibit 99.1
Gilead Tweet (@GileadSciences), February 12, 2024
#GileadNews: We announced today that we're acquiring @CymaBay Therapeutics,
reinforcing our long-standing commitment to liver disease. Read the press release and important information: http://gilead.inc/48baEtP
Forward-Looking Statements
This communication contains forward-looking
statements related to Gilead Sciences, Inc. (“Gilead”), CymaBay Therapeutics, Inc. (“CymaBay”) and the acquisition
of CymaBay by Gilead that are subject to risks, uncertainties and other factors. All statements other than statements of historical fact
are statements that could be deemed forward-looking statements, including all statements regarding the intent, belief or current expectation
of Gilead and CymaBay and members of their respective senior management teams. Forward-looking statements include, without limitation,
statements regarding the transaction and related matters, prospective performance and opportunities, post-closing operations and the outlook
for the companies’ businesses, including, without limitation, the ability of Gilead to advance CymaBay’s product pipeline
and successfully commercialize seladelpar; the possibility of unfavorable results from clinical trials; regulatory applications and related
timelines; filings and approvals relating to the transaction; the expected timing of the completion of the transaction; the ability to
complete the transaction considering the various closing conditions; difficulties or unanticipated expenses in connection with integrating
the companies; and any assumptions underlying any of the foregoing. Investors are cautioned that any such forward-looking statements are
not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking
statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and
uncertainties that could cause the actual results to differ from expectations contemplated by forward-looking statements include: uncertainties
as to the timing of the tender offer and merger; uncertainties as to how many of CymaBay’s stockholders will tender their stock
in the offer; the possibility that competing offers will be made; the possibility that various closing conditions for the transaction
may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation
of the transaction; the effects of the transaction on relationships with employees, other business partners or governmental entities;
the difficulty of predicting the timing or outcome of regulatory approvals or actions, if any; the impact of competitive products and
pricing; other business effects, including the effects of industry, economic or political conditions outside of the companies’ control;
transaction costs; actual or contingent liabilities; adverse impacts on business, operating results or financial condition in the future
due to pandemics, epidemics or outbreaks; and other risks and uncertainties detailed from time to time in the companies’ periodic
reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including current reports on Form 8-K,
quarterly reports on Form 10-Q and annual reports on Form 10-K, as well as the Schedule 14D-9 to be filed by CymaBay and the Schedule
TO and related tender offer documents to be filed by Gilead and Pacific Merger Sub, Inc., a wholly owned subsidiary of Gilead. All forward-looking
statements are based on information currently available to Gilead and CymaBay, and Gilead and CymaBay assume no obligation and disclaim
any intent to update any such forward-looking statements.
Additional Information and Where to Find It
The tender offer described in this document has not yet commenced.
This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities
of CymaBay, nor is it a substitute for any tender offer materials that Gilead, Pacific Merger Sub, Inc. or CymaBay will file with the
SEC. A solicitation and an offer to buy securities of CymaBay will be made only pursuant to an offer to purchase and related materials
that Gilead intends to file with the SEC. At the time the tender offer is commenced, Gilead will file a Tender Offer Statement on Schedule
TO with the SEC, and CymaBay will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender
offer. CYMABAY’S STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE,
A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER
OFFER. The Offer to Purchase, the related letter of transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation
Statement on Schedule 14D-9, will be sent to all stockholders of CymaBay at no expense to them. The Tender Offer Statement on Schedule
TO, the Solicitation/Recommendation Statement on Schedule 14D-9 and other related documents will be made available for free at the SEC’s
web site at www.sec.gov. Additional copies may be obtained for free by contacting Gilead or CymaBay.
Free copies of these materials and certain other offering documents will be made available by Gilead by mail to Gilead Sciences, Inc.,
333 Lakeside Drive, Foster City, CA 94404, attention: Investor Relations, by phone at 1-800-GILEAD-5 or 1-650-574-3000, or by directing
requests for such materials to the information agent for the offer, which will be named in the Tender Offer Statement on Schedule TO.
Investors and security holders of CymaBay may also obtain, free of charge, the Solicitation/Recommendation Statement on Schedule 14D-9
and other related documents that CymaBay has filed with or furnished to the SEC under the “Investors & Media” section
of CymaBay’s website at www.cymabay.com/investors-media.
Exhibit 99.2
Gilead LinkedIn Post, February 12, 2024
#GileadNews: We announced today that
we're acquiring CymaBay Therapeutics, reinforcing our long-standing commitment to liver disease. We'll continue advancing a potential
therapy for primary biliary cholangitis, a rare and chronic liver disease that impairs liver function and quality of life. Read the press
release and important information: https://gilead.inc/48baEtP
Forward-Looking Statements
This communication contains forward-looking statements related to Gilead
Sciences, Inc. (“Gilead”), CymaBay Therapeutics, Inc. (“CymaBay”) and the acquisition of CymaBay by Gilead that
are subject to risks, uncertainties and other factors. All statements other than statements of historical fact are statements that could
be deemed forward-looking statements, including all statements regarding the intent, belief or current expectation of Gilead and CymaBay
and members of their respective senior management teams. Forward-looking statements include, without limitation, statements regarding
the transaction and related matters, prospective performance and opportunities, post-closing operations and the outlook for the companies’
businesses, including, without limitation, the ability of Gilead to advance CymaBay’s product pipeline and successfully commercialize
seladelpar; the possibility of unfavorable results from clinical trials; regulatory applications and related timelines; filings and approvals
relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction considering
the various closing conditions; difficulties or unanticipated expenses in connection with integrating the companies; and any assumptions
underlying any of the foregoing. Investors are cautioned that any such forward-looking statements are not guarantees of future performance
and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results
may differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and uncertainties that could
cause the actual results to differ from expectations contemplated by forward-looking statements include: uncertainties as to the timing
of the tender offer and merger; uncertainties as to how many of CymaBay’s stockholders will tender their stock in the offer; the
possibility that competing offers will be made; the possibility that various closing conditions for the transaction may not be satisfied
or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction;
the effects of the transaction on relationships with employees, other business partners or governmental entities; the difficulty of predicting
the timing or outcome of regulatory approvals or actions, if any; the impact of competitive products and pricing; other business effects,
including the effects of industry, economic or political conditions outside of the companies’ control; transaction costs; actual
or contingent liabilities; adverse impacts on business, operating results or financial condition in the future due to pandemics, epidemics
or outbreaks; and other risks and uncertainties detailed from time to time in the companies’ periodic reports filed with the U.S.
Securities and Exchange Commission (the “SEC”), including current reports on Form 8-K, quarterly reports on Form 10-Q
and annual reports on Form 10-K, as well as the Schedule 14D-9 to be filed by CymaBay and the Schedule TO and related tender offer documents
to be filed by Gilead and Pacific Merger Sub, Inc., a wholly owned subsidiary of Gilead. All forward-looking statements are based on information
currently available to Gilead and CymaBay, and Gilead and CymaBay assume no obligation and disclaim any intent to update any such forward-looking
statements.
Additional Information and Where to Find It
The tender offer described in this document has not yet commenced.
This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities
of CymaBay, nor is it a substitute for any tender offer materials that Gilead, Pacific Merger Sub, Inc. or CymaBay will file with the
SEC. A solicitation and an offer to buy securities of CymaBay will be made only pursuant to an offer to purchase and related materials
that Gilead intends to file with the SEC. At the time the tender offer is commenced, Gilead will file a Tender Offer Statement on Schedule
TO with the SEC, and CymaBay will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender
offer. CYMABAY’S STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE,
A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER
OFFER. The Offer to Purchase, the related letter of transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation
Statement on Schedule 14D-9, will be sent to all stockholders of CymaBay at no expense to them. The Tender Offer Statement on Schedule
TO, the Solicitation/Recommendation Statement on Schedule 14D-9 and other related documents will be made available for free at the SEC’s
web site at www.sec.gov. Additional copies may be obtained for free by contacting Gilead or CymaBay.
Free copies of these materials and certain other offering documents will be made available by Gilead by mail to Gilead Sciences, Inc.,
333 Lakeside Drive, Foster City, CA 94404, attention: Investor Relations, by phone at 1-800-GILEAD-5 or 1-650-574-3000, or by directing
requests for such materials to the information agent for the offer, which will be named in the Tender Offer Statement on Schedule TO.
Investors and security holders of CymaBay may also obtain, free of charge, the Solicitation/Recommendation Statement on Schedule 14D-9
and other related documents that CymaBay has filed with or furnished to the SEC under the “Investors & Media” section
of CymaBay’s website at www.cymabay.com/investors-media.
In addition to the Offer to Purchase, the related Letter of Transmittal
and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, Gilead and CymaBay file annual, quarterly
and current reports, proxy statements and other information with the SEC. Gilead’s and CymaBay’s filings with the SEC are
also available for free to the public from commercial document-retrieval services and at the website maintained by the SEC at www.sec.gov.
Exhibit 99.3
Good Morning –
Gilead just announced (full
text at end of email) a definitive agreement to acquire CymaBay Therapeutics for $4.3B ($32.50/share), which, upon closing, will further
expand our Liver Disease portfolio to include an investigational, oral PPARδ agonist (seladelpar) for the treatment of primary
biliary cholangitis (PBC). PBC is a progressive, inflammatory, autoimmune disease that can lead to the need for liver transplant
or death.
The transaction has been approved by
both Gilead and CymaBay's Boards of Directors, and is expected to close in Q124, subject to regulatory approvals and other customary
closing conditions.
| • | Seladelpar
has demonstrated statistically significant improvement in markers of cholestasis related
to risk of progression and PBC-related pruritis in the Phase 3 ENHANCE and RESPONSE studies. |
| • | CymaBay
filed a new drug application (NDA) with FDA in December 2023. The NDA filing was accepted
with priority review, with a PDUFA target action date of August 14, 2024. |
| • | EMA
and MHRA filings are expected in 1H24. |
| • | Seladelpar
received Breakthrough Therapy Designation in the U.S. (Oct '23) and Ophan Drug Designation
in both the U.S. (Nov '16) and Europe
(Sept
'17). |
| • | If
approved, seladelpar has the potential to become a preferred 2nd-line agent in PBC. |
| • | Seladelpar
is the only potential treatment to demonstrate statistically significant reduction in pruritus
(severe itching) in this patient population as measured by the pruritus numerical rating
scale (NRS). |
| • | PBC
is a rare, chronic, cholestatic liver disease mainly affecting women (1 in 1,000 women over
the age of 40, or about 130,000 total people in the U.S.) that impairs liver function and
quality of life. Progression of PBC is associated with an increased risk of liver-related
mortality. |
| • | The
current standard of care for second-line treatment is obeticholic acid which is used on top
of generic ursodeoxycholic acid (“UDCA”) for inadequate responders or as a monotherapy
for those intolerant to UDCA. Based on the obeticholic acid U.S. Prescribing Information:
|
| • | Only ~50% of patients have an adequate response to obeticholic acid. |
| • | Additionally, obeticholic acid can cause or worsen PBC-related pruritis. |
| • | Gilead will leverage its existing ~180-person strong Liver commercial infrastructure to support the anticipated launch later this
year. |
| • | The acquisition is expected to close in Q124 and is subject to regulatory approvals and other
customary closing conditions. Upon FDA approval of seladelpar, the transaction is expected
to enhance Gilead’s revenue growth, and it is also expected that the transaction will be approximately neutral to earnings per share
in 2025 and significantly accretive thereafter. We will update our 2024 guidance following close. |
Q. What were the Phase 3 trial results that supported
seladelpar's NDA filing for PBC in December 2023? How might seladelpar be differentiated?
| • | Seladelpar achieved its primary endpoint of biochemical response in 2 Phase 3 trials, demonstrated reduction
in ALP levels, a key marker of disease progression, and key secondary endpoint of improved pruritus, a debilitating symptom of the disease. |
| • | We are confident seladelpar
will be differentiated from other potential competitors, including elafibranor (currently under review by FDA), by its rate of ALP normalization,
and statistically significant improvement in pruritus at 6 months that is sustained through 12 months measured by the daily numerical
rating scale (NRS; 0-10). Currently, there are no effective anti-pruritic options for PBC. In the Phase 3 RESPONSE study,
safety and tolerability profiles were comparable between treatment and placebo arms. |
Summary Table of Key Results from
Phase 3 Trials:
| |
RESPONSE (N=193) |
ENHANCE (N=265) |
| Patient Population |
Inadequate response to or intolerance to UDCA |
Inadequate response to or intolerance to UDCA |
| Composite ALP & Bilirubin Response (%) |
Month 12
10mg: 61.7% vs. Placebo: 20%
p<0.0001 |
Month 3
10mg: 78.2% vs. Placebo: 12.5%
p<0.0001 |
| ALP Normalization (%) |
Month 12
10mg: 25% vs PBO: 0%
p<0.0001 |
Month 3
10mg: 27.3% vs. PBO: 0%
P<0.0001 |
| D Pruritus (NRS) |
Month 6
10mg: -3.2 vs Placebo: -1.7
p<0.005 |
Month 3
10mg: -3.14 vs. Placebo: -1.55
p=0.02 |
Q. What is the size of the commercial opportunity
for seladelpar?
| • | An estimated 130K patients are impacted by PBC in the U.S. |
| • | An estimated 125K patients are impacted by PBC in Europe. |
| • | Kaken has rights to exclusively develop and commercialize seladelpar in Japan. |
Q. Will you need to expand your sales organization
or investment to support seladelpar?
| • | This deal leverages our existing commercial infrastructure in Liver diseases, where Gilead has ~180 liver sales representatives that
we estimate already cover ~80% of the estimated U.S. prescribers for PBC. We will adjust our sales organization accordingly to maximize
this opportunity. |
Q. When do you expect seladelpar LOE?
| • | Seladelpar’s composition of matter patents expire in August 2025 (U.S.) and September 2024 (Europe),
respectively. Additionally, method of use patents for seladelpar extend to 2035-2038. Our current expectation is that after
approval, orphan drug exclusivity will extend 7 years and 10 years in the U.S. and Europe respectively. |
Q. How does this fit into your Liver portfolio?
| • | Gilead is a recognized leader in viral hepatitis products, but it does not have any treatments for PBC.
We estimate our current sales team covers ~80% of PBC treating physicians in the U.S. |
Q. How many employees does CymaBay have and are they
all joining the Gilead team?
| • | CymaBay is based out of Newark, CA and has ~100 employees. We are actively working with CymaBay
to evaluate the best operating model moving forward that leverages our combined infrastructure and expertise. |
Q. How is Gilead financing this transaction?
| • | Gilead is financing this acquisition using cash on hand. |
Q. How will this transaction be accounted for in
the P&L?
| • | The acquisition will be accounted for as an asset acquisition and, as such, substantially all of the
purchase price is expected to be expensed as acquired in-process research and development expenses on our Consolidated Statements of Income
upon closing. |
Please let me know if you have any questions.
Jacquie
Jacquie Ross,
CFA
VP, Investor Relations
& Corporate Strategic Finance
408.656.8793 Mobile
jacquie.ross4@gilead.com
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements related to Gilead
Sciences, Inc. (“Gilead”), CymaBay Therapeutics, Inc. (“CymaBay”) and the acquisition of CymaBay by Gilead that
are subject to risks, uncertainties and other factors. All statements other than statements of historical fact are statements that could
be deemed forward-looking statements, including all statements regarding the intent, belief or current expectation of Gilead and CymaBay
and members of their respective senior management teams. Forward-looking statements include, without limitation, statements regarding
the transaction and related matters, prospective performance and opportunities, post-closing operations and the outlook for the companies’
businesses, including, without limitation, the ability of Gilead to advance CymaBay’s product pipeline and successfully commercialize
seladelpar; the possibility of unfavorable results from clinical trials; regulatory applications and related timelines; filings and approvals
relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction considering
the various closing conditions; difficulties or unanticipated expenses in connection with integrating the companies; and any assumptions
underlying any of the foregoing. Investors are cautioned that any such forward-looking statements are not guarantees of future performance
and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results
may differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and uncertainties that could
cause the actual results to differ from expectations contemplated by forward-looking statements include: uncertainties as to the timing
of the tender offer and merger; uncertainties as to how many of CymaBay’s stockholders will tender their stock in the offer; the
possibility that competing offers will be made; the possibility that various closing conditions for the transaction may not be satisfied
or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction;
the effects of the transaction on relationships with employees, other business partners or governmental entities; the difficulty of predicting
the timing or outcome of regulatory approvals or actions, if any; the impact of competitive products and pricing; other business effects,
including the effects of industry, economic or political conditions outside of the companies’ control; transaction costs; actual
or contingent liabilities; adverse impacts on business, operating results or financial condition in the future due to pandemics, epidemics
or outbreaks; and other risks and uncertainties detailed from time to time in the companies’ periodic reports filed with the U.S.
Securities and Exchange Commission (the “SEC”), including current reports on Form 8-K, quarterly reports on Form 10-Q
and annual reports on Form 10-K, as well as the Schedule 14D-9 to be filed by CymaBay and the Schedule TO and related tender offer documents
to be filed by Gilead and Pacific Merger Sub, Inc., a wholly owned subsidiary of Gilead. All forward-looking statements are based on information
currently available to Gilead and CymaBay, and Gilead and CymaBay assume no obligation and disclaim any intent to update any such forward-looking
statements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
The tender offer described in this document has not yet commenced. This
communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities
of CymaBay, nor is it a substitute for any tender offer materials that Gilead, Pacific Merger Sub, Inc. or CymaBay will file with the
SEC. A solicitation and an offer to buy securities of CymaBay will be made only pursuant to an offer to purchase and related materials
that Gilead intends to file with the SEC. At the time the tender offer is commenced, Gilead will file a Tender Offer Statement on Schedule
TO with the SEC, and CymaBay will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender
offer. CYMABAY’S STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE,
A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE
14D-9 BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER
OFFER. The Offer to Purchase, the related letter of transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation
Statement on Schedule TO, will be sent to all stockholders of CymaBay at no expense to them. The Tender Offer Statement on Schedule TO,
the Solicitation/Recommendation Statement on Schedule 14D-9 and other related documents will be made available for free at the SEC’s
web site at www.sec.gov. Additional copies may be obtained for free by contacting Gilead or CymaBay. Free copies of these materials and
certain other offering documents will be made available by Gilead by mail to Gilead Sciences, Inc., 333 Lakeside Drive, Foster City, CA
94404, attention: Investor Relations, by phone at 1-800-GILEAD-5 or 1-650-574-3000, or by directing requests for such materials to the
information agent for the offer, which will be named in the Tender Offer Statement on Schedule TO. Investors and security holders of CymaBay
may also obtain, free of charge, the Solicitation/Recommendation Statement on Schedule 14D-9 and other related documents that CymaBay
has filed with or furnished to the SEC under the “Investors & Media” section of CymaBay’s website at www.cymabay.com.
In addition to the Offer to Purchase, the related Letter of Transmittal
and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, Gilead and CymaBay file annual, quarterly
and current reports, proxy statements and other information with the SEC. Gilead’s and CymaBay’s filings with the SEC are
also available for free to the public from commercial document-retrieval services and at the website maintained by the SEC at www.sec.gov.
GILEAD SCIENCES EXPANDS LIVER PORTFOLIO WITH ACQUISITION
OF CYMABAY THERAPEUTICS
-- Gilead Adds Seladelpar to Portfolio, a PPARδ Agonist for
the Treatment of Primary Biliary Cholangitis (PBC) with FDA Priority Review and Anticipated U.S. Approval in Third Quarter of 2024 --
-- Seladelpar Phase 3 Data Demonstrates a Best-in-Disease Profile
for Second-Line PBC --
-- Acquisition Expands Gilead’s Long-Standing Commitment to
Patients with Liver Diseases --
FOSTER CITY, Calif. & NEWARK, Calif. – February 12,
2024 – Gilead Sciences, Inc. (Nasdaq: GILD) and CymaBay Therapeutics, Inc. (Nasdaq: CBAY) announced today a definitive agreement
under which Gilead will acquire CymaBay for $32.50 per share in cash or a total equity value of $4.3 billion. The addition of CymaBay’s
investigational lead product candidate, seladelpar for the treatment of primary biliary cholangitis (PBC) including pruritus, complements
Gilead’s existing liver portfolio and aligns with its long-standing commitment to bringing transformational medicines to patients.
“We are looking forward to advancing seladelpar by leveraging
Gilead’s long-standing expertise in treating and curing liver diseases,” said Daniel O’Day, Chairman and Chief Executive
Officer, Gilead Sciences. “Building on the strong research and development work by the CymaBay team to date, we have the potential
to address a significant unmet need for people living with PBC and expand on our existing broad range of transformational therapies.”
PBC is a rare, chronic, cholestatic liver disease mainly affecting women
(1 in 1,000 women over the age of 40 or about 130,000 total people in the U.S.) that impairs liver function and quality of life. The most
common early symptoms of PBC are pruritus (itching) and fatigue, which can be debilitating for some patients. Progression of PBC is associated
with an increased risk of liver-related mortality.
Seladelpar is an investigational, oral, selective peroxisome proliferator-activated
receptor delta (PPARδ) agonist, shown to regulate critical metabolic and liver disease pathways. The United States Food and Drug
Administration (FDA) has completed its filing review and accepted a New Drug Application for seladelpar and granted priority review with
a Prescription Drug User Fee Act target action date of August 14, 2024.
Seladelpar received FDA Breakthrough Therapy Designation for use in
the treatment of PBC including pruritus in patients without cirrhosis or with compensated cirrhosis and PRIME status (EMA), as well as
Orphan Drug Designation in the U.S. and Europe for the treatment of patients with PBC.
In the pivotal Phase 3 RESPONSE trial, seladelpar achieved statistical
significance over placebo across primary composite endpoints of biochemical response (61.7% for patients on seladelpar vs 20.0% for placebo),
normalization of alkaline phosphatase at 12 months (25.0% for patients on seladelpar vs 0.0% for placebo) and statistically significant
improvement in pruritus at six months among people living with moderate-to-severe itch that was sustained through 12 months.
“Today’s agreement with Gilead is the culmination of years
of focus and determination at CymaBay to advance seladelpar and bring new hope to people living with PBC and their families,” said
Sujal Shah, President, and CEO at CymaBay Therapeutics. “Now that seladelpar has achieved priority review with the FDA, we are excited
that Gilead, with its long-standing commitment to patients with liver disease, can apply its regulatory and commercial expertise to bring
seladelpar as quickly as possible to people with PBC.”
Terms of the Transaction
The transaction was approved by both the Gilead and CymaBay Boards of
Directors and is anticipated to close during the first quarter of 2024, subject to regulatory approvals and
other customary closing conditions.
Under the terms of the merger agreement entered into in connection with
the transaction, a wholly-owned subsidiary of Gilead will promptly commence a tender offer to acquire all of the outstanding shares of
CymaBay’s common stock at a price of $32.50 per share in cash, which offer price represents a 27 percent premium to CymaBay’s
closing share price on February 9, 2024. Following successful completion of the tender offer, Gilead will acquire all remaining shares
not tendered in the offer through a second step merger at the same price as in the tender offer. Upon FDA approval of seladelpar, the
proposed transaction is expected to enhance Gilead’s revenue growth, and it is also expected that the transaction will be approximately
neutral to earnings per share in 2025 and significantly accretive thereafter.
Consummation of the tender offer is subject to a minimum tender of at
least a majority of then-outstanding CymaBay shares, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act and other customary conditions.
BofA Securities, Inc. and Guggenheim Securities, LLC are acting as financial
advisors to Gilead. Centerview Partners LLC and Lazard are acting as financial advisors to CymaBay.
About Seladelpar
Seladelpar, an investigational treatment for people with PBC, is an
oral, selective peroxisome proliferator-activated receptor delta (PPARδ) agonist shown to regulate critical metabolic and liver
disease pathways in indications with high unmet medical need. Preclinical and clinical data support its ability to regulate genes involved
in bile acid synthesis, inflammation, fibrosis and lipid metabolism, storage, and transport.
About CymaBay Therapeutics
CymaBay Therapeutics, Inc. is a clinical-stage biopharmaceutical company
focused on improving the lives of people with liver and other chronic diseases that have high unmet medical need. Our deep understanding
of the underlying mechanisms of liver inflammation and fibrosis, and the unique targets that play a role in their progression, have helped
us receive breakthrough therapy designation (FDA), PRIME status (EMA), and orphan drug status (U.S. and Europe) for seladelpar, a first-in-class
investigational treatment for people with PBC. A new drug application for seladelpar was submitted to the FDA in December 2023. Our evidence-based
decision-making and commitment to the highest quality standards reflect our relentless dedication to the people, families, and communities
we serve. To learn more, visit www.cymabay.com and follow us on X (formerly Twitter) and LinkedIn.
About Gilead Sciences
Gilead Sciences, Inc. is a biopharmaceutical company that has pursued
and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company
is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19,
and cancer. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, Calif.
Forward-Looking Statements
This communication contains forward-looking statements related to Gilead,
CymaBay and the acquisition of CymaBay by Gilead that are subject to risks, uncertainties and other factors. All statements other than
statements of historical fact are statements that could be deemed forward-looking statements, including all statements regarding the intent,
belief or current expectation of Gilead and CymaBay and members of their respective senior management teams. Forward-looking statements
include, without limitation, statements regarding the transaction and related matters, prospective performance and opportunities, post-closing
operations and the outlook for the companies’ businesses, including, without limitation, the ability of Gilead to advance CymaBay’s
product pipeline and successfully commercialize seladelpar; the possibility of unfavorable results from clinical trials; regulatory applications
and related timelines; filings and approvals relating to the transaction; the expected timing of the completion of the transaction; the
ability to complete the transaction considering the various closing conditions; difficulties or unanticipated expenses in connection with
integrating the companies; and any assumptions underlying any of the foregoing. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance
on these forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of risks and
uncertainties. Risks and uncertainties that could cause the actual results to differ from expectations contemplated by forward-looking
statements include: uncertainties as to the timing of the tender offer and merger; uncertainties as to how many of CymaBay’s stockholders
will tender their stock in the offer; the possibility that competing offers will be made; the possibility that various closing conditions
for the transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval
for the consummation of the transaction; the effects of the transaction on relationships with employees, other business partners or governmental
entities; the difficulty of predicting the timing or outcome of regulatory approvals or actions, if any; the impact of competitive products
and pricing; other business effects, including the effects of industry, economic or political conditions outside of the companies’
control; transaction costs; actual or contingent liabilities; adverse impacts on business, operating results or financial condition in
the future due to pandemics, epidemics or outbreaks; and other risks and uncertainties detailed from time to time in the companies’
periodic reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including current reports on Form
8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, as well as the Schedule 14D-9 to be filed by CymaBay and the Schedule
TO and related tender offer documents to be filed by Gilead and Pacific Merger Sub, Inc., a wholly owned subsidiary of Gilead. All forward-looking
statements are based on information currently available to Gilead and CymaBay, and Gilead and CymaBay assume no obligation and disclaim
any intent to update any such forward-looking statements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
The tender offer described in this document has not yet commenced. This
communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities
of CymaBay, nor is it a substitute for any tender offer materials that Gilead, Pacific Merger Sub, Inc. or CymaBay will file with the
SEC. A solicitation and an offer to buy securities of CymaBay will be made only pursuant to an offer to purchase and related materials
that Gilead intends to file with the SEC. At the time the tender offer is commenced, Gilead will file a Tender Offer Statement on Schedule
TO with the SEC, and CymaBay will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender
offer. CYMABAY’S STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE,
A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER OFFER.
The Offer to Purchase, the related letter of transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation
Statement on Schedule 14D-9, will be sent to all stockholders of CymaBay at no expense to them. The Tender Offer Statement on Schedule
TO, the Solicitation/Recommendation Statement on Schedule 14D-9 and other related documents will be made available for free at the SEC’s
web site at www.sec.gov. Additional copies may be obtained for free by contacting Gilead or CymaBay.
Free copies of these materials and certain other offering documents will be made available by Gilead by mail to Gilead Sciences, Inc.,
333 Lakeside Drive, Foster City, CA 94404, attention: Investor Relations, by phone at 1-800-GILEAD-5 or 1-650-574-3000, or by directing
requests for such materials to the information agent for the offer, which will be named in the Tender Offer Statement on Schedule TO.
Investors and security holders of CymaBay may also obtain, free of charge, the Solicitation/Recommendation Statement on Schedule 14D-9
and other related documents that the Company has filed with or furnished to the SEC under the “Investors & Media” section
of CymaBay’s website at https://www.cymabay.com/investors-media.
In addition to the Offer to Purchase, the related Letter of Transmittal
and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, Gilead and CymaBay file annual, quarterly
and current reports, proxy statements and other information with the SEC. Gilead’s and CymaBay’s filings with the SEC are
also available for free to the public from commercial document-retrieval services and at the website maintained by the SEC at www.sec.gov.
###
Gilead and the Gilead logo are trademarks of Gilead Sciences, Inc.,
or its related companies. The CymaBay name and logo are trademarks of CymaBay.
For more information about Gilead, please visit the company’s website at www.gilead.com, follow Gilead on X/Twitter (@Gilead
Sciences) and LinkedIN (@Gilead-Sciences).
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