A Gilead Sciences scientist analyzes patient antibody levels at Gilead's laboratory in Foster City, California.
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Gilead Sciences will acquire $ 21 billion worth of biotech company Immunomedics to increase the availability of cancer treatments through Gilead, the companies said on Sunday.
The deal will give Gilead access to the drug Trodelvy, an FDA-cleared treatment for metastatic triple negative breast cancer.
Gilead said it will acquire Immunomedics for $ 88 per share in cash. The offering is funded by approximately $ 15 billion in cash on hand and $ 6 billion in newly issued debt. The transaction is expected to close in the fourth quarter of 2020, according to the statement.
"This acquisition represents a significant step forward in Gilead's work in building a strong and diverse oncology portfolio," said Daniel O'Day, chief executive of Gilead, in a statement.
"Trodelvy is an approved transforming drug for a type of cancer that is particularly difficult to treat," said O & # 39; Day. "We will now continue to explore its potential for treating many other cancers, both as monotherapy and in combination with other treatments."
Immunomedics is valued at around $ 10 billion after the company's shares nearly doubled this year.
The deal comes about as Gilead's hepatitis C business has struggled in recent years and overall sales have plummeted as the coronavirus pandemic weakens demand for some drugs. Gilead revenue declined 10% to $ 5.1 billion in the second quarter.
In the past few years, biotech companies have been deeply involved in cancer treatments. According to the World Health Organization, cancer is the second leading cause of death worldwide, killing nearly 10 million people in 2018.
Gilead recently turned its attention to the pandemic. In May, the Food and Drug Administration granted Gilead's antiviral drug remdesivir an emergency approval that allows hospitals and doctors to use the drug on patients hospitalized for Covid-19, even though the drug was not officially approved by the agency . The intravenous drug has helped shorten the recovery time for some hospital patients.
An inhaled version of the drug is currently being developed that is administered via a nebulizer, a delivery device that can turn liquid drugs into mist.