Gilead Sciences Inc (NASDAQ: GILD) said late on Sunday that it will buy Immunomedics (biotech company) for £16.32 billion. The acquisition will help Gilead expand its footprint in oncology as it brings Immunomedics (NASDAQ: IMMU) promising cancer drug, Trodelvy, under its umbrella.
At £50.90 per share, Gilead Sciences is currently trading around the same level in the stock market at which it started the year 2020. It had touched a year to date high of £65.28 per share in late April. Here’s what you need to know about the value investing strategy.
Trodelvy received accelerated approval from the U.S. FDA
Trodelvy received accelerated approval from the U.S. FDA earlier this year in April to be used in patients with an aggressive form (triple-negative) of breast cancer that is hard to treat. As per Immunomedics’ statement on Monday, it is also scheduled to seek regulatory approval in Europe for its cancer drug in the first six months of 2021.
Gilead is expected to buy Immunomedics’ outstanding shares at a per-share price of £68.39 that roughly represents a 108% premium on £32.83 per share, at which the biotech firm closed the regular session on Friday. CEO Daniel O’Day of Gilead commented on the news and said:
“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.”
According to Gilead Sciences, it will raise £4.66 billion via newly issued debt to fund the deal. The remaining, it added, will come from £11.66 billion that it already
