Gilead Sciences Strengthens Oncology Pipeline with Major Acquisition

Gilead Sciences buys Arcellx for $7.8B, gaining full control of a promising CAR-T therapy for multiple myeloma. The deal includes a $5/share CVR tied to $6B in sales by 2029.

In a decisive move to bolster its cancer treatment portfolio, Gilead Sciences has announced a definitive agreement to acquire Arcellx, Inc., gaining full control of a promising cell therapy for blood cancer. The transaction, valued at approximately $7.8 billion, underscores the biopharmaceutical giant's strategic commitment to expanding beyond its core HIV business.

Deal Terms and Strategic Rationale

Under the agreement, Gilead will pay $115 per share in cash to Arcellx stockholders. This offer represents a significant 68% premium over the target company's average share price for the preceding 30 days. Additionally, a contingent value right (CVR) of $5 per share has been structured, with payment contingent upon the commercial success of the therapy known as anitocabtagene autoleucel (anito-cel). To trigger the CVR payment, the treatment must achieve cumulative global net product sales of at least $6.0 billion by the end of 2029.

Gilead, which has held an 11.5% stake in Arcellx since a 2022 collaboration, is now moving to secure complete ownership and decision-making authority over the clinical asset. The therapy at the center of the deal is a CAR-T cell treatment developed for multiple myeloma.

Regulatory Pathway and Financial Projections

The U.S. Food and Drug Administration (FDA) has set a target action date of December 23, 2026, for its review of anito-cel. Gilead's management anticipates that, assuming a successful launch, the acquisition will begin contributing positively to earnings per share starting in 2028.

Market participants reacted with measured sentiment to the news. On the day of the announcement, Gilead's shares experienced a decline of approximately 1.20%, closing at €126.94. Despite this daily dip, the stock maintains a year-to-date gain of over 22%. Analysts generally view the slight pullback as a typical market response to the substantial acquisition cost, while acknowledging the strategic merit of the transaction.

Next Steps for the Landmark Deal

The acquisition is expected to close in the second quarter of 2026, pending the receipt of customary regulatory approvals and the satisfaction of other closing conditions. Investor attention will now focus intently on the critical FDA decision date in December 2026, which will determine the commercial future of this key oncology candidate.

This acquisition solidifies Gilead's concerted push into the oncology sector, marking a multi-billion dollar bet on the long-term potential of advanced cell therapies.