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The U.S. Government Should Buy Gilead for $156Bn to Save Money on Hep C

At $500 per pill, buying Gilead could lower hepatitis C drug costs per patient to one-third their current level, making it affordable to rapidly treat the 2.7 million Americans that have HCV.

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Originally published on 01/17/2017 in Forbes

There is a unique intersection of a clear winning therapy, large public health need, slow adoption, high product pricing and attractive break-up valuations of the Gilead components compared to its conglomerate stock market valuation.

Buying the company rather than purchasing its products just works out to be a far cheaper route. Gilead’s market cap is around $100B. Paying the shareholders a 30% acquisition premium and assuming the company’s $26B debt would cost the U.S. government $156B.

Read the full article here, and find an interactive model of a U.S. Government led, private equity style, stock market acquisition of Gilead Pharmaceuticals here.

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