Gilead Sciences Inc. (NASDAQ:GILD) has continued to boost its cancer portfolio with the latest announcement of the acquisition of Immunomedics Inc. (NASDAQ:IMMU)
Gilead enhancing oncology portfolio with $21 billion acquisition of Immunomedics
The company will acquire Immunomedics for $21 billion as it looks to enhance its cancer portfolio by having access to a promising cancer drug. The transaction is expected to be finalized in Q4 2020. The acquisition gives Gilead access to Trodelvy™, which is a breast cancer drug developed by Immunomedics. In April, the drug received accelerated FDA approval to treat a tough and aggressive breast cancer type.
Trodelvy is a first-in-class Trop-2 directed ADC with approval to treat adult metastatic triple-negative breast cancer patients. Immunomedics has plans to submit a supplemental BLA supporting the full approval of Trodelvy in Q4 2020 in the US. Immunomedics is also on track of filing for regulatory approval for the drug in 1H 2021 in Europe.
Gilead indicated that it will issue a tender offer to raise cash to acquire all outstanding Immunomedics shares at $88 per share. This will be a 108% premium over where the shares closed on Friday at $42.25.
Gilead To Consider Trodelvy for other cancer types
Daniel O’Day, the CEO and Chairman of Gilead stated that the acquisition is a huge step in building a diverse and strong oncology portfolio. He explained that Trodelvy™ is a transformational and approved treatment for mTNBC, which is challenging to treat. O’Day said that the company will now focus on exploring the drug’s potential in treating other types of cancers as a monotherapy and in combination with other therapies. Further, O’Day said that they were looking forward to welcoming the Immunomedics teams to the company and continue advancing the development of the drug.
Dr. Behzad Aghazadeh, the Chairman of Immunomedics, said that they were delighted that Gilead has recognized the value of Trodelvy in treating mTNBC. Behzad said they were excited about opportunities ahead as they join the Gilead team.