Gilead Sciences buys Immunomedics: what is known about the deal
U.S. biopharmaceutical corporation Gilead Sciences announced the acquisition of Immunomedics, a $21 billion deal. The latter is a manufacturer of drugs to treat breast cancer.
According to a statement from Gilead Sciences, it plans to pay $88 for each Immunomedics share, an amount 108 percent more than was recorded at the last auction. The transaction has already passed the necessary scrutiny by the regulatory authorities and will be closed in the coming months.
The new acquisition will allow Gilead Sciences to strengthen its position on the market of drugs aimed at treating cancer. According to the company’s representatives, the merger with Immunomedics will provide an opportunity to accelerate the widespread use of its own developments in the field of cancer.
It should be noted that breast cancer drugs are the most profitable and promising niches on the market, so the takeover of Immunomedics will bring the corporation high income and expand its influence. In addition, Gilead will be able to compensate for the humiliation of profits, which is observed against a background of reduced sales of drugs against hepatitis C and increased competition in the field of HIV medicines.
Recently, Immunomedics has introduced its new drug – Trodelvy, aimed against three times triple breast cancer. And the drug has already passed all the necessary trials, showing excellent results during the testing. The impressive data on clinical trials allowed the new product to get an accelerated approval, which is not often, especially given the complex niche – cancer.
Trodelvy is planned to be used as a third line therapy, it will be prescribed depending on the degree of remission.
Gilead Sciences is developing drugs to treat serious diseases such as HIV, AIDS and hepatitis. In addition, the company is represented in the market of medicines against cardiovascular diseases, respiratory infections and metabolic failure.
Gilead was founded in 1987 by a young Dr. Michael Riordan. He decided to concentrate on antiviral products against serious diseases, and the reason for this was the disease of the specialist himself. Riordan in the Philippines has contracted dengue fever, which is incurable. The head office of the company is in California.
Gilead regularly expands its product line by taking over other pharmaceutical companies. However, the focus is on the development of drugs against HIV and hepatitis, which it has been doing for about 30 years. According to the data, about 10 million people around the world use HIV therapy from this particular American manufacturer. For example, Sovaldi, which is used for hepatitis C, has become a sales leader. A wide range of users from many countries Gilead is known for such drugs as Tamiflu, Viread, Atripla and others.
