Rival drug makers AstraZeneca Plc (NYSE:AZN) and Gilead Sciences Inc. (NASDAQ:GILD) are discussing a potential merger in what would be the biggest health-care tie-up on record.
According to multiple media reports, AstraZeneca has made a preliminary approach to rival drug maker Gilead Sciences. The U.K.-based firm contacted Gilead last month to gauge its interest in a possible deal. Gilead has reportedly discussed the idea with advisers, but no decisions have been made on how to proceed.
AstraZeneca, valued at $140 billion U.S., is England’s biggest drug maker by market capitalization and has developed treatments for conditions from cancer to cardiovascular disease. Gilead, worth $96 billion U.S., is the creator of a drug that’s received U.S. approval for use with coronavirus patients.
If a deal goes ahead, it would surpass Bristol-Myers Squibb Co.’s (NYSE:BMY) $74-billion U.S. takeover of Celgene Corp. last year as the biggest-ever healthcare acquisition. It would also rank among the 10 biggest merger and acquisition transactions of all time.
Shares of AstraZeneca have risen about 41% over the past 12 months, while shares of Gilead gained 19% over the period. Gilead has attracted investor interest as its antiviral drug for COVID-19, Remdesivir, has worked its way through clinical trials in recent months.
Remdesivir, which has an emergency use authorization from the U.S. Food and Drug Administration, has been shown in some early studies to shorten hospital stays for people with COVID-19.
