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Gilead Sciences To Buy Immunomedics In $21 Bln Deal

Gilead Sciences Inc. (GILD) agreed to buy Immunomedics (IMMU) for $88.00 per share in
cash, valuing the company at about $21 billion, the two companies said in a statement on Sunday.

The deal provides Gilead access to Immunomedics' breast cancer treatment drug, Trodelvy. The drug was granted an accelerated FDA approval in April.

Immunomedics plans to submit a supplemental Biologics License Application to support full approval of Trodelvy in the United States in the fourth quarter of 2020. It is also on track to file for regulatory approval in Europe in the first half of 2021.

As per the terms of the deal, Gilead will commence a tender offer to acquire all of the outstanding shares of Immunomedics' common stock for $88.00 per share, representing a 108 percent premium to Immunomedics' closing price on September 11.

The tender offer will be funded through about $15 billion in cash on hand, as well as about $6 billion in newly issued debt.

The Immunomedics deal is expected to be neutral to accretive to Gilead's non-GAAP earnings per share in 2023 and significantly accretive thereafter.

The transaction is expected to close in the fourth quarter of 2020.

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