Gilead Sciences to Buy Arcellx in Deal Valuing Biotech at $7.8 Billion — Update

By Colin Kellaher

Gilead Sciences has agreed to buy the rest of development partner Arcellx in a deal that values the biotechnology company at about $7.8 billion at closing.

Gilead on Monday said it will pay an initial $115 a share in cash for the 88.5% of Arcellx it doesn't already own, a 79% premium to Friday's closing price of $64.11 for the Redwood City, Calif., company.

Shares of Arcellx were recently up nearly 78% at $113.85 in premarket trading.

Arcellx investors will also receive non-transferable contingent value rights worth an additional $5 a share based on future sales of Arcellx's lead pipeline candidate anitocabtagene autoleucel, or anito-cel, an investigational CAR T-cell therapy for patients with the blood cancer multiple myeloma.

Foster City, Calif., biopharmaceutical company Gilead and Arcellx in 2022 struck a deal to co-develop and co-commercialize anito-cel.

As part of the agreement, Gilead made an upfront payment and invested $100 million in Arcellx, which was also eligible to receive up to $1.5 billion in development and milestone payments, along with royalties on sales of the anito-cel.

Gilead said the acquisition of Arcellx gives it full control of anito-cel, allowing for accelerated development and commercialization of the drug while eliminating the future payouts to Arcellx.

The U.S. Food and Drug Administration is reviewing Arcellx's application seeking approval of anito-cel as a fourth-line treatment for patients with relapsed or refractory multiple myeloma, with a decision expected by the end of the year.

Gilead said it expects to complete the acquisition during the second quarter.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

February 23, 2026 06:48 ET (11:48 GMT)