Gilead Sciences (NASDAQ: [[ticker:GILD]]), the world’s largest maker of HIV medications, said today it plans to sell $2.2 billion in debt securities that can potentially be converted into equity stakes. Half of the debt comes due in 2014, while the other half is due to be paid back in 2016. The company said it plans to use at least $1 billion of the proceeds to buy back shares of its stock, which is designed to diminish the supply of shares and raise the stock price. Gilead shares slumped 1.7 percent after the news, to $32.89 at 1:10 pm Eastern, a long shot from its 52-week high of $50 a share.
Author: Luke Timmerman
Luke is an award-winning journalist specializing in life sciences. He has served as national biotechnology editor for Xconomy and national biotechnology reporter for Bloomberg News. Luke got started covering life sciences at The Seattle Times, where he was the lead reporter on an investigation of doctors who leaked confidential information about clinical trials to investors. The story won the Scripps Howard National Journalism Award and several other national prizes. Luke holds a bachelor’s degree in journalism from the University of Wisconsin-Madison, and during the 2005-2006 academic year, he was a Knight Science Journalism Fellow at MIT.
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