Gilead Sciences Weakened by Immunomedics Acquisition

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On October 27, 2020, Gilead Sciences, Inc. lowered its rating on Gilead Sciences, Inc. to BBB+. Gilead has closed on its $21 billion acquisition of Immunomedics Inc. using a combination of cash and debt. The two-notch downgrade reflects that the significant deterioration in financial risk from this transaction more than offsets the improvement in business strength, according to the ratings agency. S&P Global views the transaction as advancing Gilead's presence in the oncology market but doing little to alleviate the near-term concentration in HIV and the absence of revenue growth over the next two to three years.

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