Comprehensive M&A data with integrated detailed company information

Gilead Sciences to acquire Immunomedics in USD 21bn deal
Posted on Monday, 14 September 2020 10:36
Gilead Sciences has signed on the dotted line to pick up Immunomedics in a deal that values the biopharmaceutical group at USD 21.00 billion.

Under the terms of the transaction, the acquiror is offering USD 88.00 per share in cash, representing a premium of 108.3 per cent to the target’s close of USD 42.25 on 11th September 2020, the last trading day prior to the announcement.

The deal has received the green light from both boards of directors and remains subject to the usual raft of approvals, with completion slated for the fourth quarter of 2020.

Closing is not conditional on any financing and will be funded through around USD 15.00 billion in cash on hand, as well as USD 6.00 billion in newly issued debt.

Gilead expects to retain an investment grade credit rating following this transaction and the agreement does not alter the group’s stated capital allocation strategy or its commitment to maintain and grow its dividend over time.

The transaction will provide the acquiror with Trodelvy, a first-in-class Trop-2 directed antibody-drug conjugate that was granted accelerate approval by the US Food and Drug Administration in April for the treatment of adult patients with metastatic triple-negative breast cancer, that have received at least two prior treatments for metastatic disease.

Immunomedics plans to submit a supplemental biologics license application to support full approval of Trodelvy in the US in the fourth quarter of 2020 and is also on track to file for the green light by regulators in the first half of 2021.

The company posted revenue of USD 20.07 million in the six months ended 30th June 2020, compared to not recording any turnover in the corresponding period of 2019.

Net loss totalled USD 159.58 million in H1 2020, compared to a loss of USD 163.36 million in H1 2019.

© Zephus Ltd