Prime Highlights
- Gilead to acquire Tubulis for up to $5 billion to boost cancer pipeline.
- Deal focuses on advanced targeted cancer therapies using ADC technology.
Key Facts
- $3.15 billion upfront payment with additional milestone payouts.
- Tubulis to operate as a research unit after deal closure.
Background
Gilead Sciences is planning to acquire the German biotechnology company Tubulis in a deal worth up to $5 billion. The acquisition will enable Gilead to enhance its cancer drug development process while expanding its research efforts in cancer therapies.
The agreement requires an initial payment of $3.15 billion, which will be followed by additional payments that can reach up to $1.85 billion after specific performance milestones are achieved. The acquisition will be finalized during the second quarter, which will result in Tubulis becoming a research division of Gilead.
The move is part of Gilead’s efforts to expand its business beyond core operations, which face patent expiration and decreasing COVID-19 treatment sales. The company has been acquiring new businesses during the past few months to strengthen its pharmaceutical development pipeline. In the first week of February, it agreed to acquire Arcellx in a deal worth up to $7.8 billion. In the previous month, it also signed a deal to buy Ouro Medicines for more than $2 billion.
With this acquisition, Gilead will gain access to Tubulis’ experimental cancer drugs based on antibody-drug conjugates (ADCs). These are treatments for sending chemotherapy directly into cancer cells, while attempting not to hurt healthy normal tissues.
Tubulis is currently developing early-stage treatments such as TUB-040, which targets certain proteins linked to ovarian cancer and lung cancer. Another drug, TUB-030, is being tested for different solid tumors.
The companies have previously worked together on ADC development. Tubulis also has ties with other global pharmaceutical firms. Gilead said the deal will help speed up the development of new cancer treatments and improve its long-term growth outlook.
