Gilead Strengthens its Oncology Portfolio with Acquisition of Immunomedics

Gilead is ambitious in expanding its oncology portfolio, as it has made deals with three different pharmaceutical companies so far this year. Gilead recently acquired Immunomedics for $21 billion when the two parties signed a joint statement on September 13th.

By Judy Ya-Hsuan Lin

Months ago, Gilead purchased a 49.9% stake in cancer developer Pionyr Immunotherapeutics in June for $275 million and paid $4.9 billion for Forty Seven Inc. which is the creator of an experimental treatment targeting blood cancer. All these acquisitions give Gilead a strong foothold in the fast-growing cancer drug market.

On September 11th, Gilead offered about double the value of Immunomedics’s last closing price of $42.25 per share to acquire it for a total of $21 billion. The transaction is expected to close in the fourth quarter of this year, mainly granting Gilead access to Immunomedics’ breast cancer treatment drug Trodelvy. This acquisition aims to outcompete other large drug makers over securing the number of ownerships of oncology therapies in the portfolio. Also, breast cancer happens to be one of the most lucrative segments of the worldwide cancer therapy market. EvaluatePharma predicts that breast cancer therapy will make $157 million this year.

Related Article: Gilead Adds Jounce to its Long List of Oncology Partnerships

Gilead CEO, Daniel O’Day said, “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.”

The future success of Trodelvy is optimistic, based on its past records. Trodelvy was granted an accelerated FDA approval in April and sparked $20.1 million net sales in its first two months on the market. According to Jefferies & Co. analytic firm, Trodelvy could become a go-to treatment for triple-negative breast cancer, and its sales will reach $480 million by 2022. According to the joint statement, in the first half of 2021, Immunomedicas will be on track to file for regulator approval for Trodelvy in Europe.

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References

1. https://www.reuters.com/article/us-immunomedics-m-a-gilead-sciences/gilead-to-buy-immunomedics-in-21-billion-deal-idUSKBN2640V8

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Author

Judy Ya-Hsuan Lin

Success is the ability to go from one failure to another with no loss of enthusiasm.