Gilead Sciences Inc. 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.
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.
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, which would be attractive to several large drugmakers, many of which have set their sights on adding more fast-growing oncology therapies to their portfolios.
Breast cancer is one of the most lucrative segments of the world-wide cancer-drugs market, which EvaluatePharma pegs at $157 billion this year. Trodelvy has shown signs of success in treating lung and other cancers too. At a medical conference this coming week, Immunomedics is expected to present data on Trodelvy’s performance against bladder cancer.