'Remdesivir' Gilead on the Verge of Acquiring Immunomedics

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] It has been reported that the U.S. pharmaceutical company Gilead Sciences is pursuing the acquisition of the biotech company Immunomedics.

The Wall Street Journal (WSJ) reported on the 12th that Gilead is expected to acquire Immunomedics for $20 billion (approximately 23.74 trillion KRW) by the 14th (local time) at the latest.

Gilead is widely known as the manufacturer of the antiviral drug Remdesivir. Remdesivir was originally developed as an Ebola treatment but is currently being used under emergency authorization as a treatment for COVID-19.

Immunomedics is famous for its breast cancer treatment drug, Trodelvy. Trodelvy was approved by the U.S. government in April to be used as a treatment for triple-negative breast cancer. Immunomedics' stock price has risen 99% this year alone, and its market value is estimated to be over $10 billion.

Gilead and Immunomedics were initially preparing to form a partnership. Daniel O’Day, Gilead’s CEO who took office in March 2019, has focused on expanding the product portfolio. Last year, Gilead signed a $5 billion partnership with the Belgian biotech company Galapagos, and earlier this year, it acquired the biotech company Forty Seven, which produces blood cancer treatments, for about $5 billion.