Reuters
- Gilead said on Sunday it had agreed to acquire the cancer-drug company Immunomidics for 21 billion.
- Immunomedic shares rose 106% on Monday following the news.
- Immunomidics, used to treat various forms of breast cancer, sells Drodelvi and is being evaluated for other possible signs of cancer.
- Trodelvie was approved by the FDA in April and recorded વેચાણ 20 million in sales in its first two months on the market.
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Shares of the cancer-drug company soared 106% on Monday on Gilead’s નો 21 billion Immunomedix offer.
Immunomidics developed Trodalvi, an antibody-drug conjugate, used to treat triple-negative breast cancer.
Trodelvi received FDA approval in April and recorded sales of 20 million in its first two months in the market. The drug is expected to generate blockbuster sales during its lifetime and is being evaluated as a treatment for many other cancer and solid tumor symptoms.
Gilead expects the deal to boost its earnings growth immediately, and it will remain neutral to improve adjusted earnings per share in 2023, as well as “significantly improve thereafter,” Gilead said.
Gilead will fund the acquisition through a 15 15 billion cash hand, as well as a newly issued 6 6 billion through cash.
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Over the years, Gilead has come under heavy pressure from investors to work out its large cash flow. At the end of 2018, Gilead had 30 30 billion in cash and short-term equivalents, according to data from Vicharts.com.
The company’s latest 10-Q filing shows that it has 18 18.91 billion in cash and intends to use 15 15 billion in cash to fund the Immunomidix deal, while Gilead’s cash pile is expected to reach 4 4 billion.
Gilead investors have approved the deal. Shares of Gilead rose 4% in Monday’s trading.
Gilead said it expects to maintain an investment grade credit rating after the transaction, and the deal will not change its commitment to maintaining and increasing its dividends over time.
The 21 21 billion deal was approved by the boards of both companies and is expected to close in the fourth quarter of 2020.
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