Gilead (NASDAQ:GILD) have agreed to buy Immunomedics (NASDAQ:IMMU) for $21 billion through a cash transaction. The initial speculation of a possible acquisition was confirmed by Gilead on Sunday afternoon, cementing an exciting prospect for both company shareholders. The news comes after Immunomedics received accelerated approval for its Breast Cancer drug Trodelvy in April. It is reported the “drug beat back triple negative breast cancer for nearly four months longer than chemotherapy in patients getting the medication as a third line of therapy”.

“The drug Trodelvy attacks metastatic triple-negative breast cancer with an antibody-drug conjugate that binds to Trop-2”. See more information on the drug here.

Immunomedics has seen an impressive YTD stock gain of 250%, with analysts remaining bullish on the stock.

Acquisition details

  • Acquisition is worth $21 Billion, with $15 Billion to be paid in Cash while the other $6 Billion is to be paid in issued debt
  • Gilead acquisition prices IMMU at $88 per share. Hence, the premarket movements pushing IMMU to $88 in value at open. Assuming the negotiations go smoothly IMMU shareholders will be issued in cash the value of $88 per share
  • Acquisition to be finalised in Q4 2020

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

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

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