Arcellx is prohibited to break large deal in a biopharma company

Gilead Sciences acquired a partnership with Arcellx in its largest deal since 2020, and it looks to strengthen its line-up of cancer treatments. The company 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 has a strong foothold in HIV drugs and liver disease treatments.

Daniel O' Day, CEO of Gilead, has pursued big-ticket deals and partnerships. The proposed Arcellx acquisition sets an example of how companies are increasingly forming partnerships to secure privileged positions as potential buyers, particularly in the oncology field.

Partnership of Kite Pharma, a unit of Gilead Sciences and Arcellx, to develop and sell anitocel, an experimental CAR-T therapy for multiple myeloma.

According to several analysts, anitocel could become a leading cell therapy and a "multi-billion-dollar product" for Gilead. The U.S. Food and Drug Administration is currently reviewing the therapy and analysing the expected outcome by the end of this year.

Johnson & Johnson and its partner, known as a legend in biotech, developed Carvykti, which generated about $1.9 billion in sales in 2025.

Gilead, in his early-stage experimental treatments for myeloid leukaemia, has generalised myasthenia gravis, a rare neuromuscular disease.

BMO Capital Markets analyst Evan Seigerman said the deal, which is expected to close in the second quarter of 2026, has a potential milestone to remove up to $1.5 billion in payments for Gilead.

FDA proposed approval of anito-cel transaction is expected to grow earnings per share in 2028 and beyond.

Gilead agreed to also pay Arcellx shareholders $5 per share on achieving cumulative anti-cel global net sales of at least $6 billion from the launch date till the end of the year.