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.