Conclusion: Gilead should buy Galapagos
I think Filgotinib is one of the best products Gilead has in its pipeline. If all goes well, it could rake in quite some billions for Gilead. The treatment seems to be best-in-class so far.
Gilead could do an excellent acquisition if it would buy Galapagos, even for $5B. Besides the other products in its pipeline and its technology platform, Filgotinib alone could be interesting enough to justify the acquisition. As a shareholder of Gilead, I am very pleased with its conservatism. I am a long-term investor and I have the feeling that Gilead's management has the same mindset. No macho overpaid acquisitions, but smaller, well-thought-out investments. The acquisition of Galapagos would fit into that investment strategy very well, I think. Until the end of this year there is a lock-up and after that probably the standstill will be effective for one or two more years. After the standstill ends, probably nothing can stop Gilead to scoop up Galapagos.
If you liked this article and you want to read more articles from a long-term perspective, feel free to hit the "Follow" button next to my name.
In the meantime, keep growing!
Disclosure: I am/we are long GILD