Tuesday, June 23, 2020 1:23:15 PM
by Ben Adams | Mar 12, 2020 8:25am
Gilead
Just before Christmas and, critically, after announcing some positive data, Forty Seven sat down at Gilead Sciences' HQ with its C-suite to talk M&A.
Gilead liked what it saw, according to a recent Securities and Exchange Commission filing (PDF) that details the $4.9 billion March deal between the two, and a sneak peek at some limited data by Gilead saw it kick-start a buyout process that went on during the annual J.P. Morgan Healthcare Conference in San Francisco.
It was also at this time that Gilead was asked the inevitable questions over whether it was doing a deal: Gilead’s CEO Daniel O’Day kept mum, but, unbeknownst to everyone at the conference, they were just weeks away from tying up the company's first biotech M&A deal since it bought Kite Pharma.
SPONSORED BY CLINICAL INK
White Paper: Keep Your GI Trials Moving During COVID-19
Clinical Ink’s intimate knowledge of and experience with GI trials enables a better deployment experience and improved trial conduct. Learn how our GI-specific data capture solutions can support virtual and hybrid trials during COVID-19.
DOWNLOAD NOW
Forty Seven set up shop in 2015 to build on evidence of the role of CD47 in immune evasion that Irv Weissman (who got nearly $200 million out this deal) and his colleagues at Stanford University generated.
The evidence suggested drugging CD47 could neutralize a key mechanism that tumors use to avoid being attacked by the immune system, thereby unlocking opportunities for combination therapies in multiple indications.
In December last year, Forty Seven went some way toward validating its approach by revealing 50% or more of the myelodysplastic syndrome (MDS) and acute myeloid leukemia (AML) patients who took its leading experimental drug magrolimab and Celgene’s Vidaza had a complete response.
The data triggered a surge in Forty Seven’s stock, which went from below $15 to above $40 in two weeks. This also saw Gilead come a-knocking.
Gilead’s accepted final bid valued Forty Seven at $95 a share. For most of its time on public markets, Forty Seven has traded below $20, dipping as low as $6 back in October.
The hefty premium bagged Gilead a drug that is being tested in a handful of indications. In addition to the phase 2 trials in MDS and AML, Forty Seven is testing magrolimab in patients with non-Hodgkin lymphoma, diffuse large B-cell lymphoma and three solid tumor types, namely colorectal, ovarian and bladder.
The first offer seems to have come over lunch just ahead of Valentine’s Day: On Feb. 10, O’Day and Forty Seven’s CEO Mark McCamish “met at a restaurant in Palo Alto, California, to discuss Parent's interest in Forty Seven. Mr. O'Day and Dr. McCamish discussed their passion and vision for oncology and how the combination of Parent and Forty Seven could maximize the potential for magrolimab.
“During the meeting, Mr. O'Day expressed interest in a potential acquisition of Forty Seven and indicated that Parent would submit a written proposal later that day to all of the outstanding shares of Forty Seven.”
The first offer was nearly half what the Big Biotech would eventually spend: just $57.50 a share. Another meeting at another Californian restaurant saw no dice from Forty Seven: They wanted more. The biotech sent over a little more private clinical data they had access to in an attempt to persuade Gilead to open its wallet a little wider.
Calls were made, the offer went up $9 a share; this was rejected, so a few more bucks were added on. Then, a decisive moment: Someone spoke to Bloomberg, which reported on the deal. Cue its shares rocketing to near the buyout offer. Gilead had to respond, which, a few days later, they did, with an offer $77 a share.
Close, but no cigar, Forty Seven said. At the eleventh hour, Gilead made its final, accepted offer and nabbed the biotech in early March. Playing hardball, having good cancer drug data, a good meal or two (and more than a little push from Bloomberg) seems to be the way forward with Gilead, which has already said it sees more bolt-on deals in its future.
Recent AFMD News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/23/2024 09:22:59 PM
- Affimed Announces Positive Early Efficacy and Progression Free Survival Results of AFM24-102 Study in EGFR Wild-Type Non-Small Cell Lung Cancer at the Annual Meeting of the American Society of Clinical Oncology 2024 • GlobeNewswire Inc. • 05/23/2024 09:05:00 PM
- Affimed Announces Acceptance of an Abstract on Preclinical Data of its Innate Cell Engager AFM28 at the European Hematology Association 2024 Congress • GlobeNewswire Inc. • 05/14/2024 02:05:00 PM
- Affimed Announces Acceptance of AFM24 Clinical Abstract at the 2024 Annual Meeting of the American Society of Clinical Oncology • GlobeNewswire Inc. • 04/24/2024 08:05:00 AM
- Affimed Reports 2023 Financial Results and Operational Progress • GlobeNewswire Inc. • 03/28/2024 10:30:00 AM
- Affimed To Report Full Year 2023 Financial Results & Corporate Update on March 28, 2024 • GlobeNewswire Inc. • 03/21/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/11/2024 08:05:48 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/06/2024 11:34:50 AM
- Affimed Announces 1-for-10 Reverse Stock Split • GlobeNewswire Inc. • 03/06/2024 11:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/08/2024 09:45:56 PM
- Affimed Provides Clinical Response Update on AFM24-102 Trial in EGFR-wildtype Non-Small Cell Lung Cancer • GlobeNewswire Inc. • 01/08/2024 09:05:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/08/2024 01:11:55 PM
- Affimed Announces Leadership Change and Organizational Restructuring • GlobeNewswire Inc. • 01/08/2024 01:00:00 PM
- Affimed Announces Sale of Wholly-Owned Subsidiary AbCheck • GlobeNewswire Inc. • 01/03/2024 11:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 12/11/2023 11:10:55 AM
- Affimed Announces Positive Data for AFM24 in Combination with the PD-L1 Checkpoint Inhibitor Atezolizumab in Heavily Pre-treated EGFR-Wildtype Non-Small Cell Lung Cancer Patients • GlobeNewswire Inc. • 12/11/2023 11:02:00 AM
- Affimed Announces Updated Phase 1/2 Data from Acimtamig in Combination with Allogeneic NK in Hodgkin Lymphoma Patients Who Failed Prior Chemotherapy and Are Double-Refractory to Brentuximab Vedotin (BV) and Checkpoint Inhibitors (CPIs) • GlobeNewswire Inc. • 12/11/2023 11:00:00 AM
- Affimed to Host Investor Conference Call Highlighting Clinical Data for Acimtamig (AFM13) and AFM24 • GlobeNewswire Inc. • 12/04/2023 11:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 11/30/2023 12:00:57 PM
- Affimed Reports Third Quarter 2023 Financial Results and Highlights Operational Progress • GlobeNewswire Inc. • 11/14/2023 11:30:00 AM
- Affimed Announces Acimtamig as International Nonproprietary Name for AFM13 • GlobeNewswire Inc. • 11/09/2023 11:30:00 AM
- Affimed to Report Third Quarter 2023 Financial Results & Corporate Update on November 14, 2023 • GlobeNewswire Inc. • 11/07/2023 11:30:00 AM
- Affimed Presents Preclinical Data Showing that Addition of an Innate Cell Engager to NK and CAR-NK Cells Improves Tumor Cytotoxicity of Both Cell Types at the 38th Annual Meeting of the Society for Immunotherapy of Cancer • GlobeNewswire Inc. • 11/03/2023 04:05:00 PM
- Affimed Announces Oral Presentation of Phase 1/2 Data from AFM13 in Combination with Allogeneic NK Cells at the 2023 ASH Annual Meeting • GlobeNewswire Inc. • 11/02/2023 01:05:00 PM
- Affimed to Participate in Upcoming Investor Conferences • GlobeNewswire Inc. • 11/01/2023 10:30:00 AM
Avant Technologies Engages Wired4Tech to Evaluate the Performance of Next Generation AI Server Technology • AVAI • May 23, 2024 8:00 AM
Branded Legacy, Inc. Unveils Collaboration with Celebrity Tattoo Artist Kat Tat for New Tattoo Aftercare Product • BLEG • May 22, 2024 8:30 AM
"Defo's Morning Briefing" Set to Debut for "GreenliteTV" • GRNL • May 21, 2024 2:28 PM
North Bay Resources Announces 50/50 JV at Fran Gold Project, British Columbia; Initiates NI 43-101 Resources Estimate and Bulk Sample • NBRI • May 21, 2024 9:07 AM
Greenlite Ventures Inks Deal to Acquire No Limit Technology • GRNL • May 17, 2024 3:00 PM
Music Licensing, Inc. (OTC: SONG) Subsidiary Pro Music Rights Secures Final Judgment of $114,081.30 USD, Demonstrating Strength of Licensing Agreements • SONGD • May 17, 2024 11:00 AM