Gilead Sciences Inc (GILD)

[DewDiligence]

GILD buying IMMU for ~$20B—according to WSJ sources:

https://www.wsj.com/articles/gilead-nears-deal-to-buy-immunomedics-for-more-than-20-billion-11599936777

Gilead Sciences Inc. GILD 2.84% is nearing a deal to buy biotech Immunomedics Inc. and its prized breast-cancer drug for more than $20 billion, according to people familiar with the matter. …A deal could be announced Monday if not sooner, assuming talks don’t fall apart and a rival drugmaker doesn’t jump in, some of the people said.

Immunomedics, based in Morris Plains, N.J., sells breast-cancer drug Trodelvy… Trodelvy has shown signs of success in treating lung and other cancers too. At a medical conference this coming week [ESMO], Immunomedics is expected to present data on Trodelvy’s performance against bladder cancer.

In April, Trodelvy was approved in the U.S. to treat…triple-negative breast cancer [see #msg-155185787—note that existing FDA approval is for the second-line setting].

…Triple-negative breast cancer is an especially aggressive form of the disease that pharmaceutical companies have struggled to treat because it lacks the molecular targets that drugs can hone in on. It accounts for 10% to 15% of breast cancers…

…Trodelvy rang up $20.1 million in net sales in its first two months on the market [May-June 2020], which Jefferies & Co. analysts said indicated the drug could become a go-to treatment for triple-negative breast cancer. In 2022, Jefferies estimates, Trodelvy sales will reach $480 million.

If the deal value is indeed around $20B, that translates into a roughly 100% premium to IMMU’s closing price yesterday.