New York, NY, September 13 2020 (CNN Business) — Gilead Sciences will acquire biopharmaceutical company Immunomedics for $21 billion, the company announced on Sunday. The acquisition will expand Gilead’s portfolio of treatments for various types of cancer. The deal with Immunomedics provides Gilead (GILD
) with Trodelvy, an antibody drug for advanced triple-negative breast cancer. The drug was given accelerated FDA approval in April. Immunomedics will be acquired by $88 per share in cash — more than double the $42.25 at which shares traded on Friday’s close.
“This acquisition represents significant progress in Gilead’s work to build a strong and diverse oncology portfolio,” Gilead Chairman and CEO, Daniel O’Day said in a statement. “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.”
The deal is anticipated to close in the fourth quarter of 2020, according to the companies. The dealwill be funded by $15 billion in cash on hand and roughly $6 billion in newly issued debt, Gilead said.