Gilead Reaches Deal to Buy Immunomedics for $21 Billion



Gilead Sciences Inc. will pay $21 billion to buy biotech Immunomedics Inc. and its prized breast-cancer drug, the company said Sunday, a sign of the value of the cancer-drugs business.

Immunomedics has a market value of roughly $10 billion following a recent surge in its stock, meaning that Gilead is paying up to secure ownership of the company.

Gilead agreed to pay $88 a share in cash for Immunomedics, whose shares closed at $42.25 Friday. That represents a 108% premium.

The Wall Street Journal first reported Saturday that Gilead and Immunomedics were nearing a more than $20 billion deal.

The deal will help Gilead accelerate its efforts to diversify into cancer, Chief Executive Daniel O’Day said.

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