Revant K. 2024 | BASIS Independent Fremont
- Project Title: Hypothetical Leveraged Buyout (LBO) of Arcus Biosciences (RCUS) by Gilead Sciences (GILD)
- BASIS Independent Advisor: Mr. Daniel Ong
- Onsite Mentor: Alberto Ortega
This research, inspired by a passion for economics and finance cultivated through academic pursuits and mentorship from Mr. Alberto Ortega at Codexis Inc and Dr. Daniel Ong at Basis Independent, explores the hypothetical Leveraged Buyout (LBO) of Arcus Biosciences by Gilead Sciences. Using various financial metrics, this project will outline an extensive LBO model and step-by-step strategic planning that will allow Gilead to utilize the acquisition and maximize profitability. The model will show 5 year projections, and analyze the viability and potential success of a leveraged buyout, taking into account economic indicators, market dynamics, and financial intricacies.The significance lies in contributing to the understanding of strategic decision-making, extensive financial models, and the broader implications of LBOs in the context of the biopharmaceutical industry. Gilead's potential multi-billion-dollar deal with Arcus Biosciences signifies a groundbreaking collaboration that could reshape drug development, impacting R&D trajectories and potentially benefiting millions. Beyond its potential for huge economic windfall, this study serves as a trailblazer for future biotech Leveraged Buyouts, with its model offering accessible insights for students and smaller biotech entities, further democratizing sophisticated financial tools and decision-making processes.