Gilead, opens new tab said on Tuesday it would acquire Germany-based Tubulis GmbH for up to $5 billion, as it looks to strengthen its cancer drugs pipeline.
This marks the latest in Gilead’s acquisition spree. The company has been expanding beyond its key areas for growth amid looming patent expiries and declining sales of its COVID-19 treatment.
In February, the U.S. pharmaceutical company acquired its partner Arcellx in a deal valued at up to $7.8 billion, and just last month, it reached an agreement to purchase the privately held biotech firm Ouro Medicines for more than $2 billion.
With the latest deal, Gilead will get access to Tubulis’ experimental drugs, which belong to a class called antibody-drug conjugates (ADC), popularly known as “guided missiles”, that deliver chemotherapy directly to cancer cells while minimizing harm to healthy tissue.
We believe the Tubulis acquisition represents a strategically sound bolt-on that addresses Gilead’s oncology pipeline growth needs, while securing differentiated next-gen ADC platform capabilities, said RBC Capital Markets analyst Brian Abrahams.
Tubulis’ lead asset, TUB-040, which binds to NaPi2b, a protein found in certain cancer cells, is currently in early-stage development for a type of ovarian cancer and non-small cell lung cancer.
Another experimental drug, TUB-030, is being studied across various solid tumor types.
“Our drugs in early trials have delivered very competitive data”, said Tubulis CEO Dominik Schumacher.
“Now for me, it’s all about how can we get this as quickly as possible to patients. And with a partner like Gilead, I think this is really the perfect way to get this vision into reality,” he added.
Gilead Sciences will acquire all outstanding equity of Tubulis GmbH for $3.15 billion in upfront cash, payable at closing, with the potential for up to $1.85 billion in additional milestone-based payments.
The two companies have previously collaborated through licensing agreements to develop ADC therapies, and Tubulis also maintains a partnership with Bristol-Myers Squibb.
Once the transaction is finalized, expected in the second quarter, Tubulis will continue its work as an ADC-focused research organization within Gilead.
