Immunomedics Inc. (NASDAQ: IMMU) shares more than doubled on Monday after the firm announced that it would be acquired by Gilead Sciences Inc. (NASDAQ: GILD). This is one of the biggest deals to go down in the health care sector this year.

Under the terms of the acquisition, Gilead will acquire all outstanding shares of Immunomedics for $88 apiece, for a total transaction value of $21 billion. The boards of directors of both companies have unanimously approved the deal, and it is expected to close in the fourth quarter of 2020.

Investors are looking at premiums of 105% and 216% compared with the 50-day and 200-day moving averages ($42.84 and $27.82), respectively, for Immunomedics. Keep in mind that Immunomedics shares were at an all-time high prior to this deal. Either way, Immunomedics investors are getting paid, and handsomely.

Management noted that this acquisition represents significant progress in Gilead’s work to build a strong and diverse oncology portfolio. Immunomedics’ Trodelvy is an approved, transformational medicine for a form of cancer that is particularly challenging to treat. It was granted accelerated approval by the U.S. Food and Drug Administration (FDA) in April for the treatment of adult patients with metastatic triple-negative breast cancer.

In the Phase 3 Ascent study, which was halted early due to efficacy based on the unanimous recommendation of the independent Data Safety Monitoring Committee, Trodelvy significantly improved progression-free survival and overall survival in previously treated patients with advanced metastatic triple-negative breast cancer.

Gilead Sciences stock traded up about 1.7% to $65.94 early Monday, in a 52-week range of $60.89 to $85.97. The consensus price target is $78.38.

Immunomedics stock was about 104% at $86.40. It has a 52-week range of $8.80 to $86.91, and the consensus price target is $52.24.

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