Gilead Sciences Inc.’s $21bn Acquisition of Immunomedics

By Jinghan Jennifer, Sanjana Ramaswamy, William Zhang (St Andrews), Mariana Velasco, Anthony Borgese, Mustafa Bayramli, Susan Xiao & Zen Suzuki (Wharton)


Overview of the deal

Acquirer: Gilead Sciences Inc.

Target: Immunomedics Inc.

Implied Equity Value: $4.30 x 231.16M = $9.78B

Total Transaction Value: $21 Billion

Close Date: Fourth Quarter of 2020

Target Advisor: Lazard and Morgan Stanley & Co. LLC are acting as financial advisors to Gilead. Centerview Partners LLC and BofA Securities are acting as financial advisors to Immunomedics

On September 13th, 2020, Gilead Sciences, Inc. announced its acquisition of Immunomedics for $21 billion in cash. With a focus on transforming care for patients with life-threatening illnesses, the bio-pharmaceutical research-based company Gilead Sciences has previously advanced Hepatitis C medication and HIV treatment therapy. Now with its acquisition of Immunomedics, a leader in the production of antibody-drug conjugate technology for hard-to-treat cancers, Gilead Sciences can utilize its commercial, medical, regulatory and manufacturing expertise, as well as its infrastructure in Europe and Japan to advance the drug Trodelvy: an FDA-approved antibody-drug conjugate that treats adult patients with metastatic triple-negative breast cancer.

Gilead will issue a tender offer to acquire Immunomedics’ outstanding common stock at $88.00 per share, $15 billion of which will be funded by cash on hand and $6 billion by newly issued debt. The $88.00 per share acquisition price comes at a 108% premium to Immunomedics’ closing price on September 11, 2020. The transaction follows several large deals in the pharmaceutical industry in August of this year, including Johnson & Johnson’s acquisition of Momenta Pharmaceuticals for $6.5 billion and Sanofi’s $3.7 billion for Principia Biopharma.

Company Details: Gilead

Chairman & CEO: Daniel O'Day

Number of Employees: 11,800

Market Cap: $81.55 bn (as of 14/09/2020)

EV: $80.86 bn

LTM Revenue: $22, 449 mil

LTM EBITDA: $12, 939 mil LTM EV/Revenue: 377.3


Company Details: Immunomedics Inc.

Immunomedics Inc. is a clinical-stage biopharmaceutical company developing diagnostic imaging and therapeutic products used in the treatment of cancer and infectious diseases. They have subsidiaries in the Netherlands and Germany to manage sales and clinical trials in Europe.

Founded in 1982, headquartered in Morris Plains, New Jersey Exec. Chairman: Dr. Behzad Aghazadeh

Number of Employees: 366

Market Cap: $19.73 bn (as of 9/20/2020)

EV: $19.23 bn