Gilead Sciences acquires $1.83 million in Xilio Therapeutics stock

Published 19/12/2024, 22:26
Gilead Sciences acquires $1.83 million in Xilio Therapeutics stock

In a recent transaction, Gilead Sciences, Inc. (NASDAQ:GILD) expanded its stake in Xilio Therapeutics, Inc. (NASDAQ:XLO) by purchasing a significant number of shares. The biopharmaceutical giant acquired approximately 1,759,978 shares of Xilio's common stock at a price of $1.04 per share, totaling around $1.83 million. According to InvestingPro data, Xilio's stock has experienced a sharp 16% decline over the past week, though analysts maintain price targets between $4-$5.

Additionally, Gilead secured 6,092,816 prefunded warrants, which grant the right to purchase common stock at a nominal exercise price of $0.0001 per share. These warrants are exercisable at any time, provided that Gilead's ownership does not exceed 19.99% of Xilio's outstanding shares.

Following these transactions, Gilead now holds 9,105,451 shares of Xilio common stock directly, reflecting its continued interest in the pharmaceutical preparations sector.

In other recent news, Xilio Therapeutics has reported promising initial clinical data from its ongoing Phase 1C trial evaluating a new combination of cancer treatments, vilastobart and atezolizumab, particularly for difficult-to-treat, microsatellite stable colorectal cancer (MSS CRC). The company is set to present these findings at the Society for Immunotherapy of Cancer's Annual Meeting. In terms of financial performance, Xilio reported an increase in cash and cash equivalents to $61.3 million, with a net loss for the quarter reported at $14.0 million.

The company also announced the addition of Aoife Brennan, M.D., and James Shannon, M.D., to its board of directors and secured approximately $11.3 million through a private investment involving Bain Capital Life Sciences and Rock Springs Capital. In an effort to streamline operations, Xilio is reducing its workforce by approximately 21%, expected to incur one-time costs of around $1 million.

Analyst firm TD Cowen has reaffirmed its Buy rating on Xilio, indicating confidence in the company's clinical direction. These are the latest developments in Xilio's ongoing operations and strategic efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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