New York (CNN Business)Gilead Sciences will acquire biopharmaceutical company Immunomedics for $21 billion, the company announced on Sunday. The acquisition will expand Gilead’s portfolio of treatments for various types of cancer.
The deal with Immunomedics provides Gilead (GILD) with Trodelvy, an antibody drug for advanced triple-negative breast cancer. The drug was given accelerated FDA approval in April. Immunomedics will be acquired by $88 per share in cash — more than double the $42.25 at which shares traded 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. “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 anticipated to close in the fourth quarter of 2020, according to the companies. The dealwill be funded by $15 billion in cash on hand and roughly $6 billion in newly issued debt, Gilead said.