Chris Lau
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Chris Lau in Value Stocks,

Gilead Sciences Rebounds

Strategic acquisitions are often overlooked by investors in the biotech sector. Overpaying for a company or buying a business that does not complement the buyer’s core market may lead to disaster. 

For Gilead Sciences, its $400 million acquisition of Nimbus Therapeutics makes perfect sense. The NASH - non-alcoholic steatohepatitis – is a disease liver disease whose therapy complements that offered by Gilead.

Risks: Galmed’s pre-clinical results are promising.

Related tickers: Merck (MRK) - Gilead was forced to pay $200M to Merck for patent infringement.