By Cara Lombardo and Jonathan D. Rockoff 

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.

Write to Cara Lombardo at cara.lombardo@wsj.com and Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com

 

(END) Dow Jones Newswires

September 12, 2020 15:07 ET (19:07 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
Gilead Sciences (NASDAQ:GILD)
Historical Stock Chart
From Sep 2020 to Oct 2020 Click Here for more Gilead Sciences Charts.
Gilead Sciences (NASDAQ:GILD)
Historical Stock Chart
From Oct 2019 to Oct 2020 Click Here for more Gilead Sciences Charts.