Gilead to buy Arcellx for $7.8B in CAR-T therapy bet
Deal secures full control of anito-cel treatment for multiple myeloma, challenging Johnson & Johnson and Bristol Myers
Gilead Sciences agreed to acquire Arcellx for $7.8 billion in a bold move to strengthen its position in the competitive market for cancer cell therapies, paying a premium of 68% to secure full control of a promising treatment for multiple myeloma.
The deal, announced Monday, will see Gilead pay $115 per share in cash at closing, plus an additional $5 per share through a contingent value right that becomes payable if anito-cel achieves cumulative global net sales of at least $6 billion through the end of 2029. The offer represents a significant premium to Arcellx's 30-day volume-weighted average share price.
The acquisition centers on anito-cel, an investigational BCMA-directed CAR T-cell therapy for relapsed or refractory multiple myeloma that Gilead believes could become a best-in-class treatment. The therapy has already demonstrated strong clinical results, with the pivotal Phase 2 iMMagine-1 study showing an overall response rate of 96% and a complete response rate of 74% in heavily pretreated patients, according to data presented at the American Society of Hematology meeting in December 2025.
"The acquisition builds on our successful collaboration with Arcellx and will allow us to maximize the long-term potential of anito-cel," Gilead said in the announcement. "We believe anito-cel has the potential to establish a new standard of care for patients with multiple myeloma."
The deal comes as Gilead seeks to bolster its oncology pipeline through its Kite Pharma subsidiary, which it acquired for $11.9 billion in 2017. The company initially partnered with Arcellx in 2022 to develop anito-cel, but the new acquisition will eliminate previous profit-sharing, milestone payments, and royalty obligations, accelerating the therapy's path to market.
Gilead's shares rose 0.2% to $151.40 in morning trading, giving the company a market capitalization of $187.8 billion. The stock is trading below analysts' average target price of $155.41, with 22 of the 29 analysts covering the stock rating it a buy or strong buy.
The multiple myeloma CAR-T market is projected to reach approximately $12 billion by 2028, driven by the success of BCMA-targeted therapies. Anito-cel will enter a market currently dominated by Johnson & Johnson and Legend Biotech's Carvykti, which generated $1.9 billion in revenue in 2025 and is projected to achieve over $5 billion in peak annual sales, and Bristol Myers Squibb's Abecma, which recorded $242 million in U.S. revenue in 2024.
Analysts have highlighted anito-cel's potential competitive advantages, including deep and durable responses in clinical studies coupled with a predictable and manageable safety profile. Notably, the therapy has shown an absence of delayed neurotoxicities such as Parkinsonism, cranial nerve palsies, or Guillain-Barré syndrome, which have been concerns with some existing treatments.
Physician surveys conducted in June 2025 indicated that 83% of doctors preferred anito-cel over similar products, suggesting strong commercial potential if the therapy receives regulatory approval. The FDA has already accepted a Biologics License Application for anito-cel, supported by results from the Phase 1 study and the pivotal Phase 2 iMMagine-1 study.
The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and other customary closing conditions. Gilead said the deal is expected to become accretive to earnings per share in 2028 or later, following anticipated FDA approval and commercial launch of anito-cel.
Beyond the immediate acquisition, Gilead is also positioning for longer-term growth through an ongoing Phase 3 iMMagine-3 trial that aims to expand anito-cel's label into earlier treatment lines. Success in earlier lines of therapy would significantly differentiate the therapy and expand its addressable market.
The deal represents Gilead's latest strategic investment in cell therapy as it seeks to diversify beyond its traditional antiviral franchise, which includes HIV and hepatitis treatments. The company has been rebuilding its oncology pipeline after setbacks in recent years, with anito-cel representing a potentially transformative asset in the blood cancer space.