Gilead Sciences, a leading biopharmaceutical company, has recently made a significant investment of around $30 million in two biotech stocks. This move demonstrates Gilead’s continued commitment to advancements in the medical field.
AlloVir – Pioneering Viral Disease Treatments
One of the companies Gilead invested in is AlloVir (ticker: ALVR), a renowned developer of innovative drugs for the treatment and prevention of viral diseases. In late June, Gilead acquired millions of additional shares of AlloVir, solidifying its position as a stakeholder in the company.
On June 27, Gilead allocated $11 million to purchase 2.9 million more AlloVir shares. These shares were acquired at an average price of $3.75 each, exceeding the highest trading price of $3.29 observed that day. According to a form filed with the Securities and Exchange Commission, Gilead now holds 16.6 million AlloVir shares. It appears that Gilead acquired these shares through AlloVir’s recent public offering of 20 million shares, which includes an option for underwriters to purchase an additional three million shares. If fully sold, AlloVir expects to receive net proceeds of $70.2 million from this offering, which may rise to $80.7 million if the option for additional shares is exercised.
Arcus Biosciences – Revolutionizing Cancer Treatments
In addition to AlloVir, Gilead also increased its investment in Arcus Biosciences (ticker: RCUS), a prominent biopharmaceutical firm focusing on the development of innovative cancer treatments. This further highlights Gilead’s dedication to advancing medical solutions in various therapeutic areas.
Gilead’s recent investment demonstrates its commitment and belief in the potential of both AlloVir and Arcus Biosciences. As of now, Gilead is AlloVir’s second-largest shareholder, holding a stake of approximately 15%.
AlloVir and Gilead’s Financial Positions
In a recent SEC filing, AlloVir announced that it had $202.6 million in cash, cash equivalents, and short-term investments at the end of the quarter ending on March 31. According to the filing, this amount is deemed sufficient to cover their planned operations for a minimum of 12 months.
Additionally, Gilead made a purchase of one million Arcus shares on June 28, amounting to a total of $19.5 million and an average price of $19.26 per share. This transaction was conducted through a stock option agreement.
Gilead’s acquisition of these additional shares brings their total ownership in Arcus to 14.8 million shares. Furthermore, they hold an option to purchase an additional 10.8 million shares, which would bring their overall ownership to 25.6 million shares and establish a 35% stake in the company. As a result, Gilead remains Arcus’ largest shareholder.
Arcus reported having $1.04 billion in cash, cash equivalents, and marketable securities as of March 31. They stated that this amount is sufficient to sustain their planned operations for at least one year.