Gilead Sciences announced a cash acquisition of Arcellx valued at as much as $7.8 billion, marking the company’s largest deal since 2020 as it seeks to expand its oncology portfolio.
Under the agreement, Gilead will pay $115 per share in cash, which represents a 79% premium to Arcellx’s most recent closing price. Arcellx shares were trading up 78.5% at $114.46, while Gilead’s stock slipped about 1% in pre-market trading.
The transaction follows Gilead’s earlier substantial acquisition activity, including a $21 billion purchase that gave it rights to the antibody-drug conjugate Trodelvy. This new deal links Gilead with Arcellx’s work on anito-cel, an investigational CAR-T cell therapy aimed at treating multiple myeloma.
Kite Pharma, a Gilead Sciences business unit, had been collaborating with Arcellx to jointly develop and commercialize anito-cel - described in filings and announcements as an experimental CAR-T therapy targeting multiple myeloma, a blood cancer. CAR-T cell therapy uses a patient’s own genetically modified immune cells to seek and destroy cancer cells.
The U.S. Food and Drug Administration is reviewing anito-cel as a fourth-line treatment for people with relapsed or refractory multiple myeloma, with a regulatory decision expected by December 23 this year.
Gilead’s chief executive, Daniel O’Day, highlighted the potential longer-term role for anito-cel. "Beyond the potential launch this year, anito-cel could become a foundational treatment for multiple myeloma over time, including earlier lines of therapy," he said.
O’Day also noted the therapy’s distinct targeting approach and how it could support the development of next-generation cell therapies, strengthening Gilead’s positioning in both oncology and inflammation treatment.
Financially, Gilead said the deal includes an additional contingent payment of $5 per Arcellx share if cumulative global net sales of anito-cel reach at least $6 billion from launch through the end of 2029. The company also expects that, if anito-cel is approved by the FDA, the acquisition will be accretive to earnings per share beginning in 2028 and thereafter.
Key context and market reaction
- Gilead is pursuing growth outside its established franchises in HIV and liver disease as sales of its COVID-19 antiviral Veklury decline and as it faces future patent expirations.
- The deal is framed as strategic for building Gilead’s oncology pipeline, leveraging Kite Pharma’s existing collaboration with Arcellx on cellular therapies.
- Market response to the announcement showed strong investor interest in Arcellx, reflected in a near 79% surge in the stock price, while Gilead shares fell modestly in pre-market trading.
What remains open
- The ultimate commercial trajectory of anito-cel depends on the FDA’s review outcome, expected by December 23 this year.
- Contingent payments tied to sales milestones mean a portion of the total transaction value depends on future commercial performance.