Gilead announced it will acquire cancer therapy developer Arcellx in a deal worth US$7.8 billion (A$11.03 billion).
This builds upon a preexisting collaboration between the companies to develop and commercialise Arcellx’s lead pipeline candidate, anitocabtagene autoleucel (anito-cel), an investigational BCMA-directed CAR T-cell therapy for patients with multiple myeloma.
Anito-cel has shown deep and durable response with a predictable and manageable safety profile in clinical studies.
“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,” Gilead Sciences chairman and CEO Daniel O’Day said.
"Beyond the potential launch this year, anito-cel could become a foundational treatment for multiple myeloma over time, including earlier lines of therapy.”
Under O’Day, Gilead has pursued several big deals and partnerships, including its $21 billion acquisition of Immunomedics in 2020.
Gilead will pay $115 per share in cash and will also pay Arcellex shareholders $5 per share, contingent upon achieving cumulative anito-cel global net sales of at least $6 billion from launch through the end of 2029.
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.
It has been approved by the U.S. Food and Drug Administration and has an anticipated Prescription Drug User Fee Act (PDUFA) action date of 23 December 2026.
Arcellx chairman and CEO Rami Elghandour said the company is grateful to have Gilead as a partner.
“We are fortunate to have found a world-class partner in Gilead, which has the expertise to carry forward Arcellx’s legacy,” Elghandour said.
“I’m grateful to our Board of Directors for this opportunity, our shareholders who supported our journey, our partners who believed in us, 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.”
The deal between Gilead and Arcellx is expected to close in Q2 2206 and will also remove up to $1.5 billion in potential milestone payments for Gilead, BMO Capital Markets analyst Evan Seigerman said.
Gilead (NASDAQ: GILD) finished down 1.04% to $149.83 on Monday. Its market cap is $185.89 billion.
Arcellx (NASDAQ: ACLX) stock jumped 77.43% to $113.75. Its market cap is $6.58 billion.
