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cognizant gilead deal: Cognizant extends partnership with biopharma firm Gilead, estimated deal size at $800 million

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Cognizant on Monday announced the expansion of its relationship with biopharmaceutical company Gilead Sciences for an additional five years, including renewal and expansion of Cognizant’s services, for a total expected value of $800 million.

Under the agreement, the NASDAQ-listed IT firm will manage Gilead’s global IT infrastructure, platforms, applications and advanced analytics, and lead initiatives to accelerate its digital transformation. This collaboration will streamline various parts of Gilead’s business with the goal of faster time to market of various medicines for life-threatening diseases, including HIV, viral hepatitis, and cancer, according to its exchange filing.

Gilead has partnered with Cognizant for more than three years now to adopt technologies designed to run business operations, new product launches and improving IT processes for research, manufacturing, and commercialisation of its products, the release said.

Cognizant plans to use Generative Artificial Intelligence (GenAI) and AI automation to improve Gilead’s customer service experience and assist it in driving greater manufacturing efficiencies.

“The GenAI advances should enable Gilead to provide greater visibility and transparency about the company’s treatments to patients and internal employees globally. Gilead will leverage Cognizant’s Neuro IT service for AI automation innovation, which should help Gilead to bring products to market more efficiently,” the release added.

“Working together our teams will be leveraging the latest technologies from automation to cloud computing, and Generative AI to help Gilead bring its products to market faster, more efficiently, and with higher customer satisfaction,” said said Surya Gummadi, executive vice president and president of Cognizant Americas.

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The large IT services firms have been frequently announcing large deals over the past few weeks. Last week, Infosys announced a $2 billion AI-led deal with an existing client spread over a period of five years. Also, Infosys had announced last month a digital transformation deal with Nordic-based Danske Bank valued at $454 million for a period of five years. The Bengaluru-based software exporter will also acquire the lender’s IT centre in Bengaluru that employs 1,400 people. Tata Consultancy Services, also in June, announced it had bagged a $1.9 billion deal from UK workplace pension scheme Nest to digitally transform its scheme administration services. Infosys, in May, won a $1.5 billion deal from global energy giant BP for a period of five years. The deal is the largest it has won in the last three years, it said.

Cognizant is scheduled to announce its second quarter results on August 2.

In the first quarter, US-based software exporter’s net profit increased 3% in the first quarter to $580 million on lower administration costs and a bump in other income. The company also announced a two-year rejig aimed at simplifying the operating model and rationalising office spaces to the tune of $400 million.

Cognizant expects the personnel-related actions of this programme to impact — lead to the termination of around 3,500 employees, or 1% of its total workforce, who will primarily be non-billable and corporate personnel.

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