Gilead Sciences Expands Partnership with Arcellx

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Gilead Sciences, a leading biotechnology company, announced on Wednesday that it is increasing its investment in its partnership with Arcellx by an additional $200 million.

Kite, a subsidiary of Gilead, has exercised its option to negotiate a license for Arcellx’s ARC-SparX program, ACLX-001, specifically in the treatment of multiple myeloma. Furthermore, the collaboration between the two companies will now also include lymphomas through Arcellx’s CART-ddBCMA.

To strengthen this partnership, Gilead will purchase 3.24 million shares of Arcellx common stock at $61.68 per share. This transaction is expected to be completed by the end of the year. With an initial equity investment of $100 million last year, Gilead’s total ownership of Arcellx is estimated to reach 13%. In addition to the stock purchase, Arcellx will receive an upfront cash payment of $85 million at closing and may be eligible for milestone payments in the future.

The new investment not only solidifies the partnership between Gilead Sciences and Arcellx but also ensures that Arcellx has a cash runway until 2027. Following this announcement, shares of Arcellx experienced a 12% increase while Gilead’s stock remained flat during premarket trading on Wednesday.

For more information, please contact Emily Dattilo.

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