Gilead to acquire cancer therapy developer Arcellx for up to $7.8 billion

Logos of Gilead at the company’s booth at the 8th China International Import Expo (CIIE) in Shanghai, China, November 6, 2025.REUTERS/Maxim Shemetov · Reuters

Reuters

Mon, February 23, 2026 at 9:54 PM GMT+9 2 min read

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Feb 23 (Reuters) - Gilead Sciences will pay as much as $7.8 billion to acquire its partner Arcellex in its largest deal since 2020, the ‌biopharma company said on Monday, as it looks to strengthen its lineup ‌of cancer treatments.

The company, which has a strong foothold in HIV drugs and liver disease treatments, has ​been looking for growth beyond its core areas as it faces declining sales of its COVID-19 drug Veklury and prepares for future patent losses.

It will pay $115 per share in cash, which is at a premium of 79% to the stock’s last close.

Shares of ‌Arcellx were trading up 78.5% ⁠at $114.46 while Gilead fell about 1% before the bell.

This is Gilead’s biggest deal since its $21 billion buyout of Immunomedics, giving it ⁠access to Trodelvy, an antibody-drug conjugate used to treat a type of advanced breast cancer.

Kite Pharma, a unit of Gilead Sciences, was partnering with Arcellx to jointly develop and ​sell anito-cel - ​an experimental CAR-T therapy for multiple myeloma, ​a type of blood cancer.

CAR-T ‌cell therapy is a cancer treatment that uses a patient’s own genetically modified immune cells to find and kill cancer cells.

The U.S. Food and Drug Administration is currently reviewing anito-cel as a fourth-line treatment for patients with relapsed or refractory multiple myeloma, with a decision expected by December 23 this year.

“Beyond the potential launch this ‌year, anito-cel could become a foundational treatment for ​multiple myeloma over time, including earlier lines of ​therapy,” said Gilead CEO Daniel O’Day.

O’Day ​said anito-cel’s unique targeting technology could help Gilead develop next-generation ‌cell therapies, strengthening its potential in oncology ​and inflammation treatment.

Upon ​FDA approval of anito-cel, the proposed transaction is expected to be accretive to earnings per share in 2028 and beyond.

Gilead will also pay Arcellx shareholders $5 ​per share, contingent upon the ‌achievement of cumulative anito-cel global net sales of at least $6 billion from ​launch through the end of 2029.

(Reporting by Christy Santhosh in Bengaluru; ​Editing by Leroy Leo and Pooja Desai)

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