Gilead to Acquire Arcellx in US$7.8 Billion Bet on Cancer Therapy

Gilead Sciences (NASDAQ:GILD) announced plans to acquire cancer immunotherapy partner Arcellx (NASDAQ:ACLX) in a deal worth up to US$7.8 billion, moving to take full control of their jointly developed multiple myeloma therapy anito-cel as it seeks to expand its oncology pipeline.

The agreement, publicized on Monday (February 23), will give Gilead full control of an experimental multiple myeloma treatment that the companies have been developing jointly.

Gilead will pay US$115 per share in cash, plus a potential additional US$5 per share tied to future sales milestones.

The therapy, known as anitocabtagene autoleucel, or anito-cel, is a next-generation CAR-T treatment targeting multiple myeloma, a blood cancer that often returns after several rounds of therapy.

So far, clinical trials suggest anito-cel can deliver lasting responses, with side effects the company says are more manageable than those seen with some current CAR-T therapies.

The drug is currently under review by the US Food and Drug Administration (FDA) as a fourth-line treatment, with a decision expected by December 23, 2026.

The filing is supported by results from a Phase 1 study and the pivotal Phase 2 iMMagine1 study.

“This agreement reflects our conviction in the potential of anito-cel and our intention to move with speed so we can make the most of that potential for patients with multiple myeloma,” said Daniel O’Day, Chairman and CEO of Gilead.

“Beyond the potential launch this year, anito-cel could become a foundational treatment for multiple myeloma over time, including earlier lines of therapy," the executive added.

The deal also gives Gilead access to Arcellx’s proprietary D-Domain platform, a technology designed to improve how engineered immune cells recognize cancer targets.

Gilead said this could support future work in cell therapies, including potential in vivo approaches.

The acquisition marks the company's largest deal since 2020 and continues a strategy of using partnerships to secure promising oncology assets. The company has been looking to expand its cancer portfolio as sales of its COVID-19 treatment decline and long-term patent expirations approach in its core HIV franchise.

Upon FDA approval of anito-cel, Gilead expects the deal to be accretive to earnings per share in 2028 and thereafter.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.