High takeout premium in $21B deal shows Gilead’s confidence in value of Immunomedics’ ADC

For Gilead to derive value commensurate with the $21 billion it will pay to buy Immunomedics at more than double the biotech’s market cap, its first-in-class antibody-drug conjugate Trodelvy will have to gain approval and capture market share in indications beyond the one for which it has gained initial approval.

In its latest and largest in a series of cancer deals this year, Gilead Sciences Inc. (NASDAQ:GILD) said Sunday it will pay $88 per share to acquire  Immunomedics Inc. (NASDAQ:IMMU), ending that biotech’s multi-decade run as a stand-alone company with a premium takeout. The price is exactly 10 times Immunomedics’ 52-week low of $8.80, reached intraday on April 3, and represents a 108% premium over its close Friday at $42.25...