BY Fraser Tennant
In its largest deal since 2020, US biopharmaceutical company Gilead Sciences is to acquire cancer therapy developer Arcellx for approximately $7.8bn.
Under the terms of the definitive agreement, Gilead will pay $115 per share in cash at the deal's closing, which is at a premium of 79 percent to the stock's last close. The agreement also includes one contingent value right of $5 per share.
Since 2022, Kite, a Gilead company, and Arcellx have had an existing collaboration to co-develop and co-commercialise Arcellx’s lead pipeline candidate, anito-cel, an investigational CAR T-cell therapy – a cancer treatment that uses a patient's own genetically modified immune cells to find and kill cancer cells – for patients with multiple myeloma, a type of blood cancer.
In clinical studies to date, anito-cel has demonstrated deep and durable responses with a predictable and manageable safety profile, addressing key challenges associated with current CAR T-cell therapies in multiple myeloma.
The US Food and Drug Administration (FDA) is currently reviewing the therapy, with a decision expected by 23 December 2026. Upon FDA approval of anito-cel, the proposed transaction is expected to be accretive to earnings per share in 2028 and thereafter.
“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 chief executive of Gilead Sciences. “Anito-cel could become a foundational treatment for multiple myeloma over time, including earlier lines of therapy.”
In addition to anito-cel, Arcellx’s D-Domain CAR technology platform has generated proprietary, target-binding domains with improved specificity and enhanced binding affinity that could potentially be used for next-generation CAR T-cell and bispecific therapies.
“The story of Arcellx is one of innovation, passion, resilience and teamwork,” said Rami Elghandour, chairman and chief executive of Arcellx. “I could not be prouder of our team, our contribution to the myeloma field, and the impact anito-cel and our D-Domain platform are poised to have for patients and clinicians.
“We are fortunate to have found a world-class partner in Gilead, which has the expertise to carry forward Arcellx’s legacy,” he continued. “Kite is well-positioned to maximise access to anito-cel, benefiting more patients, and the company’s commitment to be the leader in cell therapy is one I admire.”
The transaction has been approved by both the Gilead and Arcellx boards of directors and is anticipated to close during the second quarter of 2026, subject to the satisfaction or waiver of customary closing conditions.
Mr Elghandour concluded: “I am grateful to our board of directors, our shareholders, our partners and the patients and physicians who participated in our studies, and most of all, our team members who did the impossible and left an indelible mark on the future of medicine.”
News: Gilead to acquire cancer therapy developer Arcellx for up to $7.8 billion