Gilead to buy US biotech Arcellx for up to US$7.8 billion

Published Mon, Feb 23, 2026 · 08:59 PM

[WASHINGTON] Gilead Sciences agreed to buy biotech Arcellx in a deal with an equity value of up to US$7.8 billion as the US drugmaker seeks to boost its cancer drug pipeline.

Gilead, which owns 11.5 per cent of Arcellx’s outstanding stock, will pay US$115 per share in cash, with a contingent payment of US$5 per share dependent on future sales, according to a statement Monday (Feb 23). The price is almost double Arcellx’s closing price on Friday. 

Executives of Gilead have made it clear the company is hunting for deals to supplement its core portfolio of antivirals into cancer and other areas. Arcellx is developing a new class of immunotherapies for patients with cancer and other incurable diseases.

Kite, a company owned by Gilead, and Arcellx already have a collaboration to develop and commercialise a potentially promising treatment known as anito-cel for patients with multiple myeloma. Many patients with multiple myeloma eventually relapse and need new lines of therapy.

Gilead’s HIV franchise remains the biggest part of its business, and Wall Street is heavily focused on the prospects for its long-acting prevention drug Yeztugo. Approved in June, it’s a shot that can be given just twice a year. The company expects sales of the drug to reach US$800 million this year.

Still, Gilead executives have made it clear the company is hunting for deals. “We very much want to continue to add to our pipeline with appropriate M&A,” chief executive officer Daniel O’Day said on an earnings call in February.

The Arcellx deal is expected to close in the second quarter. BLOOMBERG