Movement Alert|Gilead Sciences Rises 3.05% in Regular Trading, Announces $7.8 Billion Acquisition of Arcellx to Bolster Oncology Pipeline

Market Focus08-18 23:33

On August 18, Gilead Sciences rose 3.05% in regular trading, trading at $143.155/share, with turnover of $235 million. The rally was driven by the company's announcement of a $7.8 billion equity-value acquisition of cancer therapy developer Arcellx.

Under the deal terms, Gilead will pay $115 per share in cash plus a $5 per share contingent value right, representing an 87% premium to Arcellx's previous closing price. The acquisition is viewed as a strategic move to further strengthen Gilead's oncology pipeline, complementing its existing cell therapy assets including the Anito-Cel program approaching its FDA PDUFA date. The deal also follows the recent FDA approval of Trodelvy for first-line triple-negative breast cancer and an EMA recommendation for a Trodelvy-Keytruda combination.

Additionally, Gilead's most recent Q2 results showed revenue of $7.8 billion beating estimates of $7.4 billion, while full-year adjusted loss guidance was narrowed to $0.30-$0.65 per share, better than the consensus estimate of $0.75 loss, supported by HIV growth guidance raised to 9-10%.

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