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The Food and Drug Administration on Wednesday approved Gilead Science's Yescarta, a lymphoma therapy drug, sending the stock 4 percent higher in after-hours trade.
Gilead said Yescarta's list price will be $373,000.
The drug falls under a class of products which aim to help the immune system identify and target cancerous cells.
Gilead CEO John Milligan said Yescarta's approval is an "important day" for lymphoma patients who have limited treatment options. He said the advancement of cell therapy research, which produced Yescarta, will help bring more options to patients with other forms of cancer.
As of their Wednesday close, shares of Gilead have gained nearly 12 percent so far this year.