Gilead Sciences to merge with NeXstar

2 March 1999

Gilead Sciences has signed a definitive agreement to acquire NeXstarPharmaceuticals in an all-stock action. Under the terms of the deal, NeXstar stockholders will receive 0.425 of a share of Gilead for each of their own and based on its average stock price for the 20-day period ended February 26, Gilead values the transaction at approximately $550 million.

The combined company will have three marketed products which currently generate revenues of over $100 million: Ambisome (liposomal amphotericin B) for serious fungal infections, the anticancer agent DaunoXome (daunorubicin citrate) and Vistide (cidofovir injection) used to treat cytomegalovirus retinitis in AIDS patients. It will have seven products in development, most notably Gilead's Preveon (adefovir dipivoxil) for HIV.

John Martin, Gilead's chief executive, said NeXstar's international organization "is particularly attractive...because of its efficient size, specialty focus and track record of market leadership." The new entity will go under the name Gilead Sciences Inc.

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