Immunomedics shares double after Gilead agrees to buy the cancer drugmaker in $21 billion deal
Gilead Sciences will acquire biotech company Immunomedics in a $21 billion deal that will expand Gilead’s availability of cancer treatments, the companies announced on Sunday.
The deal will provide Gilead access to the drug Trodelvy, a Food and Drug Administration-approved treatment for metastatic triple-negative breast cancer.
Gilead said it will acquire Immunomedics for $88 per share in cash. The offer will be funded through about $15 billion in cash on hand and $6 billion in newly issued debt. The transaction is anticipated to close in the fourth quarter of 2020, according to the statement.
Immunomedics has a market value of roughly $10 billion after the company’s shares nearly doubled this year.
The deal comes as Gilead’s hepatitis C business has struggled in recent years and its overall sales have fallen as the coronavirus pandemic weakens demand for some drugs. Gilead’s sales fell 10% during the second quarter to $5.1 billion.
Sept. 21, 2020