We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gilead Expands Oncology Pipeline With $5B Tubulis Deal
Read MoreHide Full Article
Key Takeaways
GILD will acquire Tubulis for $3.15B upfront plus $1.85B milestones to expand its ADC oncology pipeline.
Tubulis adds TUB-040 and TUB-030, advancing targeted ADC therapies for ovarian, lung and solid tumors.
GILD is on a dealmaking spree with Ouro and Arcellx buys to diversify beyond HIV into oncology and immunology.
Gilead Sciences, Inc. (GILD - Free Report) recently announced a definitive agreement to acquire Tubulis GmbH, a privately held clinical-stage biotech focused on next-generation antibody-drug conjugates (ADCs), in a move aimed at strengthening its oncology pipeline and expanding capabilities in areas of high unmet need.
The acquisition widens Gilead’s ADC portfolio by adding advanced platforms designed to deliver therapeutic payloads to tumors more precisely. Tubulis’ lead candidate, TUB-040, is a NaPi2b-directed topoisomerase-I inhibitor (TOPO1i) ADC. The candidate is currently in phase Ib/II development for platinum-resistant ovarian cancer and non-small cell lung cancer (NSCLC).
The acquisition deal also includes TUB-030, a 5T4 targeted ADC, which has shown encouraging early clinical activity across multiple solid tumors.
Shares of GILD have surged 14.8% year to date compared to the industry’s gain of 1.6%.
Image Source: Zacks Investment Research
Financial Terms of GILD’s Tubulis Acquisition
Under the terms of the agreement, Gilead will acquire Germany-based Tubulis for $3.15 billion in upfront cash, with up to $1.85 billion in additional milestone payments. The transaction, expected to be closed in the second quarter of 2026, will be funded through a combination of existing cash and debt financing.
Following completion, Tubulis will operate as a dedicated ADC research unit within Gilead, with its Munich site serving as a center for ADC innovation, supporting the advancement of next-generation oncology therapies.
Strategic Rationale Behind GILD’s Acquisition
The Tubulis acquisition is a meaningful step forward in strengthening the company’s oncology portfolio. The acquisition adds a clinical-stage candidate with potential in ovarian cancer, along with a next-generation ADC platform and an emerging pipeline.
The deal builds on a two-year collaboration that strengthened Gilead’s confidence in Tubulis’ technology and research capabilities, and the integration of these assets is expected to further enhance what is already one of the company’s most robust and diverse pipelines.
GILD’s Acquisition Spree
Gilead is looking for targeted acquisitions to bolster its pipeline and diversify beyond its dominant HIV franchise.
Last month, it announced the acquisition of Ouro Medicines, which adds OM336 (gamgertamig), a clinical-stage bispecific T-cell engager, to its inflammation portfolio. Valued at $1.675 billion upfront, with up to $500 million in milestones, the deal underscores Gilead’s push into next-generation immunology. The asset introduces a potentially differentiated “immune reset” mechanism, which could enable durable responses or drug-free remission — an approach that aligns well with Gilead’s broader cell therapy and CAR-T capabilities.
Earlier, Gilead had announced the acquisition of Arcellx for approximately $7.8 billion. This transaction centers on anitocabtagene autoleucel (anito-cel), a late-stage CAR-T therapy for relapsed or refractory multiple myeloma. With a U.S. regulatory decision expected by December 2026, anito-cel represents a key near-term catalyst with meaningful commercial potential, particularly if it expands into earlier lines of therapy.
Strategically, the Arcellx deal allows Gilead to consolidate full economic rights to anito-cel by eliminating prior profit-sharing and royalty obligations through its Kite Pharma subsidiary. This enhances long-term margin potential and improves value capture. Arcellx’s proprietary D-Domain platform provides optionality for next-generation cell therapies, supporting sustained innovation in oncology.
From an investment standpoint, these acquisitions signal a deliberate shift toward higher-growth therapeutic areas, including oncology and immunology, while reducing reliance on HIV revenues driven by blockbuster products like Biktarvy and Descovy. Management expects the Arcellx transaction to be earnings accretive by 2028, reinforcing its long-term financial rationale.
However, near-term risks remain. Gilead continues to face intensifying competition in its cell therapy segment, particularly in ex-U.S. markets, which may affect growth through 2026.
Gilead’s acquisition strategy appears well-aligned with its goal of building a diversified, innovation-driven portfolio.
Rising Momentum in Pharma/Biotech M&A Activity
Mergers and acquisitions in the pharma and biotech sector have gained significant momentum year to date, building on the recovery witnessed in 2025. Strategic dealmaking is being increasingly driven by the need to strengthen pipelines, access innovative platforms, and accelerate long-term growth.
Eli Lilly (LLY - Free Report) has emerged as a key acquirer, executing a series of transactions to expand its portfolio. The company recently agreed to acquire Centessa Pharmaceuticals, which focuses on orexin-based therapies for sleep and neurological disorders.
Centessa’s lead candidate, cleminorexton, has demonstrated promising phase II results in narcolepsy and idiopathic hypersomnia. The deal, valued at up to $7.8 billion, includes cash consideration and contingent value rights.
Earlier this year, Lilly also entered into an agreement to acquire Orna Therapeutics for up to $2.4 billion. Orna’s platform leverages circular RNA and lipid nanoparticles to enable in vivo cell therapy production, with its lead program targeting autoimmune diseases.
Lilly acquired Ventyx Biosciences, which is developing oral small-molecule therapies, including NLRP3 inhibitors aimed at treating chronic inflammatory conditions across multiple indications.
Among other notable deals, Biogen (BIIB - Free Report) has agreed to acquire Apellis Pharmaceuticals (APLS - Free Report) for approximately $5.6 billion, alongside contingent value rights tied to Syfovre sales. The acquisition adds APLS' commercial drugs, Empaveli and Syfovre, which generated combined revenues of $689 million in 2025 and are expected to sustain strong growth through 2028.
Overall, the APLS deal should enhance Biogen’s immunology and rare disease portfolio, reinforce its commercial infrastructure, and support its nephrology pipeline.
View the Zacks #1 Rank List
Image: Bigstock
Gilead Expands Oncology Pipeline With $5B Tubulis Deal
Key Takeaways
Gilead Sciences, Inc. (GILD - Free Report) recently announced a definitive agreement to acquire Tubulis GmbH, a privately held clinical-stage biotech focused on next-generation antibody-drug conjugates (ADCs), in a move aimed at strengthening its oncology pipeline and expanding capabilities in areas of high unmet need.
The acquisition widens Gilead’s ADC portfolio by adding advanced platforms designed to deliver therapeutic payloads to tumors more precisely. Tubulis’ lead candidate, TUB-040, is a NaPi2b-directed topoisomerase-I inhibitor (TOPO1i) ADC. The candidate is currently in phase Ib/II development for platinum-resistant ovarian cancer and non-small cell lung cancer (NSCLC).
The acquisition deal also includes TUB-030, a 5T4 targeted ADC, which has shown encouraging early clinical activity across multiple solid tumors.
Shares of GILD have surged 14.8% year to date compared to the industry’s gain of 1.6%.
Image Source: Zacks Investment Research
Financial Terms of GILD’s Tubulis Acquisition
Under the terms of the agreement, Gilead will acquire Germany-based Tubulis for $3.15 billion in upfront cash, with up to $1.85 billion in additional milestone payments. The transaction, expected to be closed in the second quarter of 2026, will be funded through a combination of existing cash and debt financing.
Following completion, Tubulis will operate as a dedicated ADC research unit within Gilead, with its Munich site serving as a center for ADC innovation, supporting the advancement of next-generation oncology therapies.
Strategic Rationale Behind GILD’s Acquisition
The Tubulis acquisition is a meaningful step forward in strengthening the company’s oncology portfolio. The acquisition adds a clinical-stage candidate with potential in ovarian cancer, along with a next-generation ADC platform and an emerging pipeline.
The deal builds on a two-year collaboration that strengthened Gilead’s confidence in Tubulis’ technology and research capabilities, and the integration of these assets is expected to further enhance what is already one of the company’s most robust and diverse pipelines.
GILD’s Acquisition Spree
Gilead is looking for targeted acquisitions to bolster its pipeline and diversify beyond its dominant HIV franchise.
Last month, it announced the acquisition of Ouro Medicines, which adds OM336 (gamgertamig), a clinical-stage bispecific T-cell engager, to its inflammation portfolio. Valued at $1.675 billion upfront, with up to $500 million in milestones, the deal underscores Gilead’s push into next-generation immunology. The asset introduces a potentially differentiated “immune reset” mechanism, which could enable durable responses or drug-free remission — an approach that aligns well with Gilead’s broader cell therapy and CAR-T capabilities.
Earlier, Gilead had announced the acquisition of Arcellx for approximately $7.8 billion. This transaction centers on anitocabtagene autoleucel (anito-cel), a late-stage CAR-T therapy for relapsed or refractory multiple myeloma. With a U.S. regulatory decision expected by December 2026, anito-cel represents a key near-term catalyst with meaningful commercial potential, particularly if it expands into earlier lines of therapy.
Strategically, the Arcellx deal allows Gilead to consolidate full economic rights to anito-cel by eliminating prior profit-sharing and royalty obligations through its Kite Pharma subsidiary. This enhances long-term margin potential and improves value capture. Arcellx’s proprietary D-Domain platform provides optionality for next-generation cell therapies, supporting sustained innovation in oncology.
From an investment standpoint, these acquisitions signal a deliberate shift toward higher-growth therapeutic areas, including oncology and immunology, while reducing reliance on HIV revenues driven by blockbuster products like Biktarvy and Descovy. Management expects the Arcellx transaction to be earnings accretive by 2028, reinforcing its long-term financial rationale.
However, near-term risks remain. Gilead continues to face intensifying competition in its cell therapy segment, particularly in ex-U.S. markets, which may affect growth through 2026.
Gilead’s acquisition strategy appears well-aligned with its goal of building a diversified, innovation-driven portfolio.
Rising Momentum in Pharma/Biotech M&A Activity
Mergers and acquisitions in the pharma and biotech sector have gained significant momentum year to date, building on the recovery witnessed in 2025. Strategic dealmaking is being increasingly driven by the need to strengthen pipelines, access innovative platforms, and accelerate long-term growth.
Eli Lilly (LLY - Free Report) has emerged as a key acquirer, executing a series of transactions to expand its portfolio. The company recently agreed to acquire Centessa Pharmaceuticals, which focuses on orexin-based therapies for sleep and neurological disorders.
Centessa’s lead candidate, cleminorexton, has demonstrated promising phase II results in narcolepsy and idiopathic hypersomnia. The deal, valued at up to $7.8 billion, includes cash consideration and contingent value rights.
Earlier this year, Lilly also entered into an agreement to acquire Orna Therapeutics for up to $2.4 billion. Orna’s platform leverages circular RNA and lipid nanoparticles to enable in vivo cell therapy production, with its lead program targeting autoimmune diseases.
Lilly acquired Ventyx Biosciences, which is developing oral small-molecule therapies, including NLRP3 inhibitors aimed at treating chronic inflammatory conditions across multiple indications.
Among other notable deals, Biogen (BIIB - Free Report) has agreed to acquire Apellis Pharmaceuticals (APLS - Free Report) for approximately $5.6 billion, alongside contingent value rights tied to Syfovre sales. The acquisition adds APLS' commercial drugs, Empaveli and Syfovre, which generated combined revenues of $689 million in 2025 and are expected to sustain strong growth through 2028.
Overall, the APLS deal should enhance Biogen’s immunology and rare disease portfolio, reinforce its commercial infrastructure, and support its nephrology pipeline.
GILD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.