Galapagos announced today a large investment and a 10-year deal with Gilead $GILD. The stock gapped due to Gilead buying 10% of Galapagos at $158/share. However, when stocks gap up on investments at a premium price, they almost always fall (see $MGI, $ARWR)
An analyst at Raymond James agrees, saying he believes $GLPG stock has now fully realized his price target by achieving his core investment thesis.
As terms of the deal, $GILD has promised not to increase their stake in Galapagos for another 10 years, so a buyout is off the table
An analyst at Raymond James agrees, saying he believes $GLPG stock has now fully realized his price target by achieving his core investment thesis.
As terms of the deal, $GILD has promised not to increase their stake in Galapagos for another 10 years, so a buyout is off the table