The “Try Before You Buy” M&A playbook is alive and well in biotech.
Gilead Sciences (GILD) has announced it will acquire its development partner Arcellx (ACLX) for up to $7.8 billion. Marking Gilead’s largest acquisition since its $21 billion buyout of Immunomedics in 2020, the deal is a aggressive strategic pivot to diversify beyond its core HIV and liver disease franchises as it braces for future patent cliffs and declining COVID-19 drug revenues.
💰 THE DEAL METRICS:
- The Price: $115 per share in cash—a massive 79% premium to the last closing price.
- The Sweetener: A Contingent Value Right (CVR) of $5 per share if the lead asset hits $6 billion in cumulative global net sales by the end of 2029.
- The Synergies: The buyout immediately wipes out up to $1.5 billion in milestone payments Gilead would have owed Arcellx under their existing Kite Pharma partnership.
🎯 THE CROWN JEWEL: ANITO-CEL Gilead is buying a direct challenger to Johnson & Johnson/Legend Biotech’s blockbuster Carvykti (which generated $1.9B in 2025).
- The Asset: Anito-cel, an experimental CAR-T therapy for multiple myeloma.
- The Edge: Analysts at RBC Capital Markets note that anito-cel has the potential for a superior safety profile compared to the market leader.
- The Catalyst: The FDA is currently reviewing the therapy as a fourth-line treatment, with a target action date of December 23.
💡 ANALYST TAKEAWAY: This transaction perfectly illustrates the modern biotech M&A landscape. Big Pharma is increasingly using early-stage joint ventures (like the Kite/Arcellx tie-up) to secure a privileged, inside look at clinical data before committing billions. By pulling the trigger now, Gilead pays a steep 79% premium, but secures full economics on a potential “multi-billion dollar” CAR-T franchise that is expected to be EPS accretive by 2028.
👇 Biotech Investors & Strategists: Does anito-cel’s safety profile give it enough of an edge to dethrone J&J’s Carvykti, or is Gilead paying too high a premium for a crowded multiple myeloma market?