In a high-stakes move that could reshape the cancer treatment landscape, Gilead to acquire Arcellx became the headline Monday as Gilead Sciences Inc. unveiled a $7.8 billion agreement to buy clinical-stage biotech firm Arcellx Inc..
The deal values Arcellx at $115 per share in cash plus a contingent value right worth $5 per share, underscoring Gilead’s aggressive push to deepen its oncology pipeline. Like a pharmaceutical chess move several plays ahead, the transaction signals Gilead’s confidence in a therapy it believes could become a cornerstone in blood cancer treatment.
Tender Offer and Premium Surge
Under the agreement, a Gilead subsidiary will launch a tender offer for all outstanding Arcellx shares not already in its hands. Gilead already owns about 11.5% of Arcellx stock, giving it a meaningful foothold before this full takeover bid.
The $115-per-share cash offer represents a 68% premium to Arcellx’s 30-day average share price as of Friday. Investors reacted swiftly. Arcellx shares soared more than 77% on Monday, reflecting Wall Street’s appetite for the blockbuster pairing.
Legal counsel for the transaction includes Ropes & Gray LLP advising Gilead, while Wilson Sonsini Goodrich & Rosati PC is representing Arcellx.
