Some very interesting remarks from Daniel O'Day CEO Gilead Q1 2019 results (it's a lot but worth reading imo):
“sharing with you a little bit about what you can expect from me and when. In terms of immediate priorities, broadly speaking, I'm looking first to three key areas: Number one, strengthening the pipeline, both internal programs and corporate development opportunities.”
“so back to the capital allocation. I consider it really to be in the following order in terms of priority. And the first one is where we can find opportunities to supplement our portfolio through M&A or partnerships that's priority number one because we think that's in the best interest of the long-term journey of shareholders in the company.”
“I would say that as usual I think priority number one is to -- is that our M&A activity is led by science at the end of the day. And therefore, one focuses on so many expertise that we have within the company and that would obviously be in the areas of now oncology with the acquisition of KITE and the growing portfolio, we have here liver diseases, inflammation and HIV.”
“Not to suggest that we want to be opportunistic on something that has an interesting scientific profile and a high unmet medical need where we think we could bring out a transformational difference. So I want you to know we're scanning the entirety of the environment and we're science-led. But obviously I think overall, you're generally better positioned to identify the opportunities where you have expertise in-house. And I think that was true in my previous company and its also seems to be true from what I've seen here at Gilead as well.”
“And the other thing is of course to bring interesting life stage assets in. So overall, I think the vast majority of the work that Gilead has done and arguably they've been quite successful with their late-stage acquisition approach over the course of their 30-year history. I mean, we'll be looking for opportunities like that, as well of course, to fulfill the pipeline with a keen sense on the science. And I think bolt-on type acquisitions are continued to be in my opinion the highest likelihood and the way that we'll be proceeding.”
“I think we have a leadership position, but I think we need to maintain that leadership position. And for the reasons of focus, we decided to create KITE as an independent business unit that will wake up and go to sleep every day thinking about how to be leaders in oncology cell therapy.”
“Now that's not to suggest that, they won't work with the rest of the organization to complement as we know specifically in oncology the combination approach and the multi-science approach is absolutely the way to go. But we need to make sure we secure that leadership in cell therapy, while we complement it with combination approaches in immuno-oncology or targeted therapies or other mechanisms. So that's the context.
Let's make sure, we win in cell therapy and leverage the remaining parts of the Gilead focus on oncology to win in the broader oncology market as well. So – and it's with that lens that, I took the decision to create a separate business unit to focus that, and now in the process of recruiting a CEO that will – reporting to me that will work very closely with the leadership team for success in oncology.”
“Now on the BD side, they've been very active as you know since the KITE acquisition, a very active M&A and partnership work within cell therapy, which I think is fundamental and essential, because the science is occurring of course within KITE and cell therapy, but all around this as well. So I have been impressed with the landscape analysis that the BD team has done here with the research and development team at KITE and at Gilead.
And I think we're really well positioned to continue to scan that environment and to complement it, with the appropriate pieces of the puzzle that we need to continue to write the next chapter in cell therapy history. And as John, articulated, its advances and hematologic malignancies, it's moving to solid tumors and it's also getting ready for the future of science, the allogeneic form as well, which has risks, but I think lots of opportunities as well. So, very comprehensive approach on the BD side and that will continue. John any perspective?”
John McHutchinson
“I completely agree, Dan. I think we've always had the philosophy and the success with being led by the science. We feel much comfortable in making those decisions when we have the expertise internally as you articulated. And we are opportunistic and prepared to take risks when we feel the science and the opportunity and the need exists.”
https://seekingalpha.com/article/4259400-gile...art=single
“sharing with you a little bit about what you can expect from me and when. In terms of immediate priorities, broadly speaking, I'm looking first to three key areas: Number one, strengthening the pipeline, both internal programs and corporate development opportunities.”
“so back to the capital allocation. I consider it really to be in the following order in terms of priority. And the first one is where we can find opportunities to supplement our portfolio through M&A or partnerships that's priority number one because we think that's in the best interest of the long-term journey of shareholders in the company.”
“I would say that as usual I think priority number one is to -- is that our M&A activity is led by science at the end of the day. And therefore, one focuses on so many expertise that we have within the company and that would obviously be in the areas of now oncology with the acquisition of KITE and the growing portfolio, we have here liver diseases, inflammation and HIV.”
“Not to suggest that we want to be opportunistic on something that has an interesting scientific profile and a high unmet medical need where we think we could bring out a transformational difference. So I want you to know we're scanning the entirety of the environment and we're science-led. But obviously I think overall, you're generally better positioned to identify the opportunities where you have expertise in-house. And I think that was true in my previous company and its also seems to be true from what I've seen here at Gilead as well.”
“And the other thing is of course to bring interesting life stage assets in. So overall, I think the vast majority of the work that Gilead has done and arguably they've been quite successful with their late-stage acquisition approach over the course of their 30-year history. I mean, we'll be looking for opportunities like that, as well of course, to fulfill the pipeline with a keen sense on the science. And I think bolt-on type acquisitions are continued to be in my opinion the highest likelihood and the way that we'll be proceeding.”
“I think we have a leadership position, but I think we need to maintain that leadership position. And for the reasons of focus, we decided to create KITE as an independent business unit that will wake up and go to sleep every day thinking about how to be leaders in oncology cell therapy.”
“Now that's not to suggest that, they won't work with the rest of the organization to complement as we know specifically in oncology the combination approach and the multi-science approach is absolutely the way to go. But we need to make sure we secure that leadership in cell therapy, while we complement it with combination approaches in immuno-oncology or targeted therapies or other mechanisms. So that's the context.
Let's make sure, we win in cell therapy and leverage the remaining parts of the Gilead focus on oncology to win in the broader oncology market as well. So – and it's with that lens that, I took the decision to create a separate business unit to focus that, and now in the process of recruiting a CEO that will – reporting to me that will work very closely with the leadership team for success in oncology.”
“Now on the BD side, they've been very active as you know since the KITE acquisition, a very active M&A and partnership work within cell therapy, which I think is fundamental and essential, because the science is occurring of course within KITE and cell therapy, but all around this as well. So I have been impressed with the landscape analysis that the BD team has done here with the research and development team at KITE and at Gilead.
And I think we're really well positioned to continue to scan that environment and to complement it, with the appropriate pieces of the puzzle that we need to continue to write the next chapter in cell therapy history. And as John, articulated, its advances and hematologic malignancies, it's moving to solid tumors and it's also getting ready for the future of science, the allogeneic form as well, which has risks, but I think lots of opportunities as well. So, very comprehensive approach on the BD side and that will continue. John any perspective?”
John McHutchinson
“I completely agree, Dan. I think we've always had the philosophy and the success with being led by the science. We feel much comfortable in making those decisions when we have the expertise internally as you articulated. And we are opportunistic and prepared to take risks when we feel the science and the opportunity and the need exists.”
https://seekingalpha.com/article/4259400-gile...art=single
