Jim Cramer: Gilead Paid a 'Crazy Price' for Immunomedics
Gilead announced that it's reached a deal to buy cancer treatments specialists Immunomedics for around $21 billion.
Gilead offered to pay $88 a share for Immunomedics Sunday, a more than 108% premium to the group's Friday closing price that would value the Morristown, New Jersey-based drugmaker at around $210 billion. Gilead said the deal, which it will finance with a mixture of cash and debt, will give it access to Immunomedics breast cancer treatment Trodelvy, which received approval from the U.S. Food & Drug Administration last spring.
Gilead and Immunomedics said the deal was unanimously approved by both company's boards and is expected to close in the fourth quarter of this year.
“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,” said CEO Daniel O’Day. “We look forward to welcoming the talented Immunomedics team to Gilead so we can continue to advance this important new medicine for the benefit of patients with cancer worldwide.”
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