09.14.20 - Gilead Sciences has announced on Sunday that it will acquire the biopharmaceutical company Immunomedics for $21 billion. The acquisition is meant to expand Gilead's portfolio of treatments for various types of cancer.
The deal is important as it provides Gilead with Trodelvy, an antibody drug for advanced triple-negative breast cancer. The drug has been granted accelerated FDA approval earlier this year. The deal with Immunomedics will be about $88 per share in cash - more than double the $42.25 at which the company’s shares traded for on Friday's close.
"This acquisition represents significant progress in Gilead's work to build a strong and diverse oncology portfolio," Gilead Chairman and CEO, Daniel O'Day said in a statement recently. "Trodelvy is an approved, transformational medicine for a form of cancer that is particularly challenging to treat. We will now continue to explore its potential to treat many other types of cancer, both as a monotherapy and in combination with other treatments."
The deal is expected to close in the fourth quarter of this year, according to the two companies. It will be funded by $15 billion in cash on hand and roughly $6 billion in newly issued debt, Gilead clarified.