The deal gives Gilead access to Immunomedics’ breast cancer treatment drug, Trodelvy, which was granted accelerated FDA approval in April.
Gilead said it would issue a takeover bid to purchase all of Immunomedics’ outstanding shares for $ 88 per share, which represents a premium of approximately 108% over their last closing price of $ 42. 25 on September 11th.
“This acquisition represents a significant advance in Gilead’s work to build a strong and diverse cancer portfolio,” Gilead Chief Executive Daniel O’Day said in a statement. “Trodelvy is a transformative drug approved for a particularly difficult form of cancer to treat. We will now continue to explore its potential to treat many other cancers.”
Immunomedics is also on track to apply for regulatory approval for Trodelvy in Europe in the first half of 2021, according to the statement.
The offering will be funded with $ 15 billion in cash and $ 6 billion in newly issued debt, according to the drug company.
The transaction is expected to close in the fourth quarter of 2020, the companies said.
The acquisition of Immunomedics is the latest of Gilead’s many signatures this year with the aim of expanding its portfolio of oncology products.
It bought a 49.9% stake in anticancer drug developer Pionyr Immunotherapeutics in June for $ 275 million, just months after paying $ 4.9 billion for Forty Seven Inc, a maker of an experimental treatment targeting blood cancer.
(Reporting by Ann Maria Shibu in Bengaluru; Editing by Peter Cooney and Diane Craft)