In late 2011, Gilead Sciences Inc. revealed that it was spending $11 billion in cash to acquire an unprofitable company called Pharmasset Inc. that was working on a yet-to-be approved Hepatitis C treatment. Gilead’s stock price dropped 10 percent on the day of the announcement.
“For Gilead to give up effectively one-third of their value for an unproven asset still subject to significant ongoing clinical risk seems remarkable,” one analyst opined. “Gilead is paying too much,” another said bluntly.
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