Immunomedics (IMMU), bought out by Gilead Sciences (GILD); who’s next?

Immunomedics (IMMU) has been acquired by Gilead Sciences (GILD) through stock buyout at a price of around $88 per share. The deal is expected to be completed before end of 2020.

Gilead Sciences will acquire biotech company Immunomedics in a $21 billion deal that will expand Gilead’s availability of cancer treatments, the companies announced on Sunday. 

Shares of Immunomedics surged more than 100% in premarket trading Monday.

The deal will provide Gilead access to the drug Trodelvy, a Food and Drug Administration-approved treatment for metastatic triple-negative breast cancer.

Gilead said it will acquire Immunomedics for $88 per share in cash. The offer will be funded through about $15 billion in cash on hand and $6 billion in newly issued debt. The transaction is anticipated to close in the fourth quarter of 2020, according to the statement. 

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.

Daniel O’Day, Chief Executive Officer at Gilead Sciences

In recent years, biotech companies have pushed deep into cancer treatments. According to the World Health Organization, cancer is the second leading cause of death globally, killing nearly 10 million people in 2018.

Gilead has also recently turned its attention to the pandemic. In May, the Food and Drug Administration granted Gilead’s antiviral drug remdesivir an emergency use authorization, allowing hospitals and doctors to use the drug on patients hospitalized with Covid-19 even though the drug has not been formally approved by the agency. The intravenous drug has helped shorten the recovery time of some hospitalized patients.

It is currently developing an inhaled version of the drug, which it will administer through a nebulizer, a delivery device that can turn liquid medicines into a mist in which the company will release more information in 2021.

Gilead Sciences (GILD): Other possible acquisitions

We already know that Gilead is looking to expand their oncology pipeline, so we developed a list of other possible companies that Gilead could acquire.

Sonnet BioTherapeutics (SONN)

Sonnet’s proprietary FHAB™ (Fully Human Albumin Binding) technology enables the development of innovative targeted biologic drugs with enhanced single-specific or bi-specific mechanisms. The FHAB™ platform utilizes a fully human single-chain antibody fragment (scFv) that binds to and “hitch-hikes” on human serum albumin (HSA) for transport to target tissues. Their internal focus is immune-oncology; however, their technology is suited for drug development across the spectrum of human disease.

Aptose Bioscience (APTO)

At Aptose Biosciences, they are building a pipeline of novel and targeted oncology therapies with the potential to serve specific populations of cancer patients.

Their pipeline includes products designed to provide single agent efficacy and to enhance the efficacy of conventional anti-cancer therapies through simultaneous targeting of key drivers of disease in cancer cells without overlapping toxicities and thus preserving the quality of life in cancer patients.

Sunesis Pharmaceuticals (SNSS)

Sunesis is a biopharmaceutical company focused on the development and future commercialization of new oncology therapeutics for the treatment of hematologic and solid tumor cancers. Sunesis has built an experienced cancer drug development organization committed to improving the lives of people with cancer. The Company is focused on advancing its novel kinase inhibitor pipeline, including its first-in-class PDK1 inhibitor SNS-510.

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Tim Rolle
Investor of 6 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.
Articles: 113

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