Photo Credit; Getty Images
Gilead Sciences will pay up to $7.8 billion to acquire its partner Arcellx, marking its largest transaction since 2020, as the drugmaker deepens its focus on cancer treatments.
The Foster City, California-based company, long known for its leadership in HIV and liver disease medicines, has been seeking new growth avenues. Sales of its COVID-19 therapy Veklury have declined, and the company faces upcoming patent expirations on key products.
Under Chief Executive Daniel O'Day, Gilead has pursued a strategy of targeted acquisitions and partnerships, including the $21 billion purchase of Immunomedics in 2020. The Arcellx deal reflects a broader industry trend in which large pharmaceutical companies use early collaborations to position themselves for full takeovers in competitive areas such as oncology.
Gilead will pay $115 per share in cash, representing a 79% premium to Arcellx's last closing price. Arcellx shares surged nearly 78% in morning trading following the announcement.
A key asset in the transaction is anito-cel, an experimental CAR-T therapy for multiple myeloma being jointly developed with Gilead's Kite Pharma unit. Analysts say the treatment could emerge as a leading option in the blood cancer space and potentially become a multibillion-dollar product.
The U.S. Food and Drug Administration is reviewing anito-cel as a fourth-line treatment for multiple myeloma, with a decision expected by December 23. RBC Capital Markets analyst Brian Abrahams said the therapy may offer a more favorable safety profile compared with Carvykti, a rival CAR-T treatment developed by Johnson & Johnson and Legend Biotech that generated about $1.9 billion in 2025 sales.
Beyond anito-cel, Gilead will gain Arcellx's early-stage programs targeting acute myeloid leukemia and generalized myasthenia gravis.
The deal is expected to close in the second quarter of 2026 and could eliminate up to $1.5 billion in milestone payments. Gilead also pledged an additional $5 per share if anito-cel achieves $6 billion in cumulative global net sales by the end of 2029.
