U.S based bio-pharmaceutical company Gilead Sciences Inc. (GILD) is just a step away from signing a deal to acquire fellow pharmaceutical company Immunomedics Inc. (IMMU) in a deal worth more $20 billion.
This development was first reported on Wall Street Journal, according to WSJ Gilead will be using this acquisition to expand its cancer treatment portfolio. Immunomedics’s cancer therapy- Trodelvy is approved by the FDA as a third line treatment for aggressive breast cancer.
Negotiations between the two parties began on the basis of a potential partnership however along the way it changed to an acquisition. Insider sources revealed to WSJ that the deal could be announced in one weeks’ time.
Last month Immunomedics reported positive results on final stages a study for Trodelvy, since the announcement shares of the company have increased by over 100% giving the company a market valuation of around $10 billion.
This year Gilead has been making strategic acquisitions aimed at increasing its market share in its oncology portfolio. Back in April Gilead acquired Forty Seven Inc. for $4.9 billion, the company engages in making experimental for blood cancer.
In June, the company paid $275 million to acquire 49.9% stake in Pionyr Immuno Therapeutics– a cancer drug manufacturer.