A news release reveals details of the deal between Immunomedics and Gilead. GILD is planning to purchase all outstanding shares of IMMU stock for $88 each. That’s a 108% premium over the stock’s closing price on Friday.
The offer from Gilead values Immunomedics at $21 billion. GILD plans to use $15 billion of cash on hand, as well as $6 billion in new debt, to finance the deal. Benefits of the deal include gaining Immunomedics’ Trodelvy cancer treatment. Gilead will retain the rights to the treatment outside of “greater China. South Korea and certain Southeast Asian countries.”
Daniel O’Day, chairman and CEO of Gilead, said the following about the Immunomedics acquisition news.
“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.”
Both Immunomedics and Gilead’s Boards of Directors have given their unanimous support to the deal. It will also need to complete other customary closing conditions before the deal is complete. The deal is expected to close in the fourth quarter of this year.
IMMU stock was up 99.2% and GILD stock was up 3% as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.