Cancer drugmaker Arcellx explodes 77% in a day as Gilead will acquire it

Shares of Arcellx, a mid-cap developer of cell therapies for blood cancers, surged 77% on Monday to a new all-time high after the announcement that its major partner, Gilead Sciences, will acquire the company at a substantial premium to the market price. For investors, the deal signals that leading pharmaceutical companies increasingly prefer full ownership of late-stage oncology assets, Noble argues.

Arcellx shares jumped more than 77% on the Nasdaq on Monday to close at $113.75 per share – the highest level since the stock began trading.

Investors were reacting to the announcement that Gilead, which already owns about 11.5% of Arcellx’s outstanding shares, plans to acquire the remaining stake. The transaction values Arcellx at approximately $7.8 billion, or $115 per share in cash. As of Friday, that represented a 68% premium to the company’s 30-day volume-weighted average share price.

Under the terms of the deal, Arcellx shareholders will also receive one contingent value right of $5 per share if cumulative global net sales of its experimental therapy for multiple myeloma, anitocabtagene autoleucel or anito-cel, reach $6 billion by the end of 2029.

Gilead will complete the acquisition of Arcellx shares through a tender offer. The transaction is subject to the tender of a majority of Arcellx shares and regulatory approvals. The companies expect the deal to close in the second quarter of 2026.

Gilead shares declined about 1% on Monday.

Arcellx, together with Gilead subsidiary Kite, is developing a next-generation CAR T-cell therapy. Its lead candidate, anito-cel, targets multiple myeloma, an aggressive blood cancer that remains incurable. Although existing therapies can induce remission, most patients eventually relapse and require additional courses of treatment. As the disease progresses, responses typically diminish, toxicity increases, and therapeutic options become more limited. According to company communications, clinical studies have shown deep and durable responses with a predictable and manageable safety profile.

Arcellx has submitted a Biologics License Application to the U.S. Food and Drug Administration seeking approval of anito-cel as a fourth-line treatment for patients with relapsed or refractory multiple myeloma. The FDA has set a target action date of December 2026.

In addition to anito-cel, the acquisition includes Arcellx’s D-Domain CAR platform – designed to generate proprietary binding domains for future CAR T-cell and related immunotherapy programs.

For investors, the acquisition underscores a broader trend in late-stage biotech – large pharmaceutical companies are increasingly seeking full ownership of oncology assets rather than maintaining profit-sharing and royalty structures, Noble wrote. By consolidating ownership, Gilead eliminates milestone payments and royalty obligations, simplifying long-term economics and financial reporting.

Following the announcement, at least three Wall Street analysts downgraded Arcellx shares to “hold,” according to Yahoo Finance data. “Hold” is now the most common recommendation on the stock: 12 analysts maintain that rating, while six still recommend “buy,” according to MarketWatch data. A month ago, sentiment was considerably more bullish, with 17 “buy” ratings versus only two “hold” recommendations. The average analyst target price stands at $112.15 per share, broadly in line with current levels.