Gilead buys cancer drug maker Immunomedics for $ 21 billion

(Reuters) – Gilead Sciences Inc $ 21 billion biopharmaceutical company Immunomedics Inc. , A move that will strengthen its cancer portfolio using a promising drug, the two companies said in a joint statement on Sunday.

The deal gives Gilead access to Immunomedics’ breast cancer treatment drug Trödelvi, which was granted FDA approval in April.

Gilead said it would issue a tender offer to purchase all outstanding shares of Immunomedics for $ 88 per share, representing a premium of about 108% over its final closing price of $ 42.25 on Sept 11.

“This acquisition represents significant progress in Gilead’s work to build a strong and diversified oncology portfolio,” Gilead Chief Executive Officer Daniel O’Day said in a statement. “Trodelvi is an approved, transformational drug for a form of cancer that is particularly challenging to treat. We will now continue to explore its potential for treating many other types of cancer.”

According to the statement, Immunomedics is also on track to file for regulatory approval for Trodelvi in ​​Europe in the first half of 2021.

According to the drugmaker, the offer would be given through $ 15 billion in cash and $ 6 billion in newly issued debt.

According to the companies, the transaction is expected to close in the fourth quarter of 2020.

The acquisition of Immunomedics is the latest in several Gilead aims to expand its oncology portfolio this year.

It bought a 49.9% stake in cancer drug developer Pionyr Immunotherapeutics for $ 275 million in June, just months after paying $ 4.9 billion to Forty Seven Inc, the maker of experimental treatments targeting blood cancer.

(Reporting Ann Maria Shibu in Bengaluru; Editing by Peter Connie and Diane Craft)

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