Business Maverick: Gilead in Advanced Talks for Immunomedics, Bid More Than $20 Billion

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Business Maverick: Gilead in Advanced Talks for Immunomedics, Bid More Than $20 Billion
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Gilead Sciences Inc. will acquire Immunomedics Inc. for about $21 billion cash to add breast-cancer treatments, the companies said in a statement.

Foster City, California-based Gilead would value Immunomedics at more than twice as much as what the maker of the Trodelvy breast-cancer drug was valued at on Friday.Pharmaceutical companies have been coveting Immunomedics since the Food and Drug Administration unexpectedly accelerated approval for Trodelvy in April, after a study showed the drug beat back triple negative breast cancer for almost four months longer than chemotherapy in patients getting the medication as a third line of therapy.

Morris Plains, New Jersey-based Immunomedics has a market capitalization of $9.8 billion after the shares almost doubled this year. Gilead was valued at $82.2 billion as of Friday. Its shares were little changed in the year-to-date. “This acquisition represents significant progress in Gilead’s work to build a strong and diverse oncology portfolio,” Daniel O’Day, Gilead’s chairman and chief executive officer, said in the statement.

 

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