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Will GILD's Move to Acquire ACLX Boost Its Cell Therapy Franchise?
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Key Takeaways
Gilead cell therapy sales fell 7% to $1.8B in 2025 as Yescarta and Tecartus faced growing competition.
GILD will acquire Arcellx for $7.8B, gaining control of anito-cel, eliminating profit-sharing and royalties.
GILD expects an FDA decision on anito-cel for relapsed or refractory multiple myeloma in Dec. 2026.
Gilead Sciences, Inc.’s (GILD - Free Report) Cell Therapy franchise currently comprises Yescarta and Tecartus. Sales from this unit decreased 7% year over year to $1.8 billion (in 2025) due to ongoing competitive headwinds.
Yescarta sales decreased 5% year over year to $1.5 billion, primarily as a result of in- and out-of-class competition.
Tecartus sales decreased 15% to $344 million due to in-class competition.
GILD anticipates competitive pressure in cell therapies’ business to continue in 2026, including new market entrants in several countries outside the United States.
In a move to combat this decline, Gilead recently announced that it will acquire a clinical-stage biotechnology company, Arcellx (ACLX - Free Report) , for $115 per share in cash plus a $5 contingent value right, implying an equity value of $7.8 billion.
Gilead’s subsidiary, Kite, already has a collaboration to co-develop and co-commercialize Arcellx’s lead pipeline candidate, anitocabtagene autoleucel (anito-cel).
A biologics license application seeking approval of anito-cel as a fourth-line treatment for patients with relapsed or refractory multiple myeloma has been accepted by the FDA, with a PDUFA decision expected in December 2026, providing a near-term commercial catalyst and potential expansion into earlier treatment settings.
Beyond anito-cel, Arcellx’s proprietary D-Domain platform provides long-term strategic value for next-generation CAR-T and in vivo cell therapies.
The acquisition gives GILD full control of anito-cel, streamlining development and commercialization economics by eliminating profit-sharing, milestone payments and royalties, thereby enhancing long-term margin potential and value capture.
The acquisition, expected to be closed in the second quarter of 2026, is projected to be earnings accretive from 2028.
While GILD has a dominant HIV franchise led by flagship HIV therapies — Biktarvy for treatment and Descovy for prevention — it is looking to ramp up its oncology franchise and diversify its revenue base.
Competition for GILD in the Cell Therapy Space
Biotech giant Bristol Myers (BMY - Free Report) has a strong cell-therapy portfolio with therapies like Breyanzi and Abecma.
Breyanzi (lisocabtagene maraleucel) is a CAR T cell therapy developed for the treatment of relapsed or refractory large B-cell lymphoma, chronic lymphocytic leukemia, follicular lymphoma and mantle cell lymphoma.
Breyanzi surpassed $1 billion in annualized sales in 2025, reflecting adoption in large B-cell lymphoma and recent label expansions. The strong uptake of Breyanzi boosted BMY’s top line.
Another approved CAR T therapy is Novartis’ (NVS - Free Report) Kymriah, which is approved for acute lymphoblastic leukemia that is either relapsing or refractory. It is also used in patients with LBCL or FL, two types of non-Hodgkin lymphoma, who have relapsed or are refractory after having at least two other kinds of treatment.
NVS’ Kymriah recorded sales of $381 million in 2025, down 14% from 2024 due to competitive pressure.
NVS is also developing another CAR T cell therapy, YTB323, for LBCL.
GILD’s Price Performance, Valuation and Estimates
Shares of GILD have surged 30.3% in the past year compared with the industry’s growth of 15.4%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, GILD’s shares currently trade at 16.41x forward earnings, higher than its mean of 11.32x but lower than 17.89x for the large-cap pharma industry.
Image Source: Zacks Investment Research
The bottom-line estimate for 2026 has moved up to $8.66 from $8.60 in the past 30 days, while that for 2027 has moved north to $9.63 from $9.33 in the same time frame.
View the Zacks #1 Rank List
Image: Shutterstock
Will GILD's Move to Acquire ACLX Boost Its Cell Therapy Franchise?
Key Takeaways
Gilead Sciences, Inc.’s (GILD - Free Report) Cell Therapy franchise currently comprises Yescarta and Tecartus. Sales from this unit decreased 7% year over year to $1.8 billion (in 2025) due to ongoing competitive headwinds.
Yescarta sales decreased 5% year over year to $1.5 billion, primarily as a result of in- and out-of-class competition.
Tecartus sales decreased 15% to $344 million due to in-class competition.
GILD anticipates competitive pressure in cell therapies’ business to continue in 2026, including new market entrants in several countries outside the United States.
In a move to combat this decline, Gilead recently announced that it will acquire a clinical-stage biotechnology company, Arcellx (ACLX - Free Report) , for $115 per share in cash plus a $5 contingent value right, implying an equity value of $7.8 billion.
Gilead’s subsidiary, Kite, already has a collaboration to co-develop and co-commercialize Arcellx’s lead pipeline candidate, anitocabtagene autoleucel (anito-cel).
A biologics license application seeking approval of anito-cel as a fourth-line treatment for patients with relapsed or refractory multiple myeloma has been accepted by the FDA, with a PDUFA decision expected in December 2026, providing a near-term commercial catalyst and potential expansion into earlier treatment settings.
Beyond anito-cel, Arcellx’s proprietary D-Domain platform provides long-term strategic value for next-generation CAR-T and in vivo cell therapies.
The acquisition gives GILD full control of anito-cel, streamlining development and commercialization economics by eliminating profit-sharing, milestone payments and royalties, thereby enhancing long-term margin potential and value capture.
The acquisition, expected to be closed in the second quarter of 2026, is projected to be earnings accretive from 2028.
While GILD has a dominant HIV franchise led by flagship HIV therapies — Biktarvy for treatment and Descovy for prevention — it is looking to ramp up its oncology franchise and diversify its revenue base.
Competition for GILD in the Cell Therapy Space
Biotech giant Bristol Myers (BMY - Free Report) has a strong cell-therapy portfolio with therapies like Breyanzi and Abecma.
Breyanzi (lisocabtagene maraleucel) is a CAR T cell therapy developed for the treatment of relapsed or refractory large B-cell lymphoma, chronic lymphocytic leukemia, follicular lymphoma and mantle cell lymphoma.
Breyanzi surpassed $1 billion in annualized sales in 2025, reflecting adoption in large B-cell lymphoma and recent label expansions. The strong uptake of Breyanzi boosted BMY’s top line.
Another approved CAR T therapy is Novartis’ (NVS - Free Report) Kymriah, which is approved for acute lymphoblastic leukemia that is either relapsing or refractory. It is also used in patients with LBCL or FL, two types of non-Hodgkin lymphoma, who have relapsed or are refractory after having at least two other kinds of treatment.
NVS’ Kymriah recorded sales of $381 million in 2025, down 14% from 2024 due to competitive pressure.
NVS is also developing another CAR T cell therapy, YTB323, for LBCL.
GILD’s Price Performance, Valuation and Estimates
Shares of GILD have surged 30.3% in the past year compared with the industry’s growth of 15.4%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, GILD’s shares currently trade at 16.41x forward earnings, higher than its mean of 11.32x but lower than 17.89x for the large-cap pharma industry.
Image Source: Zacks Investment Research
The bottom-line estimate for 2026 has moved up to $8.66 from $8.60 in the past 30 days, while that for 2027 has moved north to $9.63 from $9.33 in the same time frame.
Image Source: Zacks Investment Research
GILD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.