Gilead is purportedly going to spend $20 billion to acquire Immunomedics, reports the Wall Street Journal. With an investigational product in the late-stage producing positive data last month, the company just benefited from an U.S. Food and Drug Administration approval of its product called TRODELVY (sacituzumab govitecan-hziy), a Trop-2 directed antibody-drug conjugate indicated for the treatment of adult patients with metastatic triple-negative breast cancer (mTNBC) who have received a least two therapies prior for the metastatic disease.
Should this acquisition go through, the company would be acquired at a significant premium above current market valuation. In the company’s 10Q, it lists ongoing risks, including COVID-19 and the pandemic, not to mention the fact that the firm has operated at a loss for lengthy duration.
Gilead Deal Points
The deal would be for $88 per share in cash; this deal will be funded with $15 billion in cash and $6 billion in fresh debt. Scheduled to close Q4, 2020, Gilead will possess the approved cancer treatment drug Trodelvy.