By Colin Kellaher

CymaBay Therapeutics shares jumped nearly 25% and hit a new record high in early trading Monday after the clinical-stage biopharmaceutical company agreed to be acquired by Gilead Sciences for $4.3 billion.

Gilead is paying $32.50 a share in cash for CymaBay, a roughly 27% premium to Friday's closing price of $25.69 and well above CymaBay's prior all-time high of $26.35 reached during Friday's session.

Shares of the Newark, Calif., company were recently changing hands at $31.91, up about 24%, while shares of Foster City, Calif., biopharmaceutical company Gilead edged up 0.2% to $73.82.

The deal, slated to close in the current quarter, bolsters Gilead's liver portfolio with the addition of seladelpar, CymaBay's lead product candidate, for the chronic and progressive liver disease primary biliary cholangitis.

Gilead's liver-disease portfolio, which includes the hepatitis drug Vemlidy, generated sales of $2.8 billion last year.

CymBay on Monday said the U.S. Food and Drug Administration granted priority review its application seeking approval of seladelpar for the management of primary biliary cholangitis including pruritus in adults without cirrhosis or with compensated cirrhosis who are inadequate responders or intolerant to ursodeoxycholic acid.

The FDA grants priority review to medicines that have the potential to provide significant improvements in the treatment of a serious disease, and the designation shortens the review period.

CymaBay said the FDA set a target action date of Aug. 14 for the application, adding that the agency isn't currently planning to hold an advisory committee meeting to discuss the application.

Write to Colin Kellaher at

(END) Dow Jones Newswires

02-12-24 0951ET