Gilead to buy Immunomedics for $21 billion

Gilead Sciences, Inc, on Sunday, announced a definitive agreement to acquire biopharmaceutical company Immunomedics for $21 billion.

Gilead has issued a tender offer to acquire Immunomedics for $88.00 per share in cash, valuing the biopharma company at approximately $21 billion.

The tender offer is not subject to a financing condition, Gilead said.

It will offer approximately $15 billion in cash on hand and approximately $6 billion in newly issued debt.

Boost to oncology portfolio

Gilead will get access to Immunomedics’ breast cancer drug Trodelvy as part of this agreement, helping it expand its oncology portfolio.

“Trodelvy (sacituzumab govitecan-hziy), a first-in-class Trop-2 directed antibody-drug conjugate (ADC), was granted accelerated approval by the US Food and Drug Administration (FDA) in April for the treatment of adult patients with metastatic triple-negative breast cancer (mTNBC) who have received at least two prior therapies for metastatic disease,” Gliead explained in an official release.

Immunomedics is planning to submit a supplemental Biologics License Application (BLA) for full approval of the drug in the US in the fourth quarter of 2020. It is also on track to file for regulatory approval in Europe in the first half of 2021.

“This acquisition represents significant progress in Gilead’s work to build a strong and diverse oncology portfolio,” said Daniel O’Day, Chairman and Chief Executive Officer, Gilead Sciences.

“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,” he said.