Biotech M&A: Who's Next After Gilead-Kite?

The market staged an impressive comeback Tuesday from early losses resulting from the latest North Korea transgression. In fact, yesterday's rally was the best intraday rebound for the Dow since last December. Biotech has also been strong over the past week after twice successfully testing lower resistance levels in mid-August.

One thing that has helped sector sentiment is Gilead Sciences' (GILD) announced acquisition of Kite Pharma (KITE) . This was the first major M&A activity since early February. Gilead will pay a hefty price for the purchase, ponying up some $12 billion to get a foothold in the emerging CAR-T (chimeric antigen receptor T-cell) space. Investors don't seem to mind, however, and have bid up the stock as this buyout changes the narrative from the company's declining hepatitis C sales....386 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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