Gilead Sciences to Acquire Arcellx in $7.8 Billion Deal
Gilead Sciences announced on Monday its intent to acquire Arcellx for an implied equity value of $7.8 billion. The acquisition aims to expand their existing cell therapy development collaboration, which has focused on an experimental CAR-T therapy called anito-cel for multiple myeloma.
Transaction Details
Gilead Sciences will acquire Arcellx for an implied equity value of $7.8 billion. The acquisition agreement specifies a cash payment of $115 per share upon the deal's closing. This valuation represents a 79% premium over Arcellx's closing stock price prior to the announcement.
In addition to the upfront payment, Arcellx shareholders are eligible for an additional contingent payment of $5 per share. This payment is dependent on anito-cel achieving cumulative global net sales of at least $6 billion from its commercial launch through the end of 2029.
Strategic Rationale: Expanding Cell Therapy
The acquisition builds upon an existing cell therapy development collaboration between Gilead Sciences and Arcellx, which commenced in 2022. This collaboration, conducted through Kite Pharma, a cell therapy division of Gilead Sciences, has focused on the joint development and commercialization of anito-cel.
Anito-cel: A Promising CAR-T Therapy
Anito-cel is an experimental Chimeric Antigen Receptor T-cell (CAR-T) therapy. It is designed to treat multiple myeloma, a type of blood cancer. CAR-T cell therapy involves modifying a patient's own immune cells to specifically target and eliminate cancer cells. Anito-cel was initially developed by Arcellx.
Regulatory Status and Financial Outlook
The U.S. Food and Drug Administration (FDA) is currently reviewing anito-cel. A decision regarding the therapy's approval is anticipated by December 23 of this year.
Following the acquisition announcement, shares of Arcellx increased by 77.8% to $113.99. In premarket trading, Gilead's shares declined approximately 1%. The proposed transaction is projected to contribute to Gilead's earnings per share (EPS) beginning in 2028, pending FDA approval of anito-cel.