Gilead shows its belief in its partner’s cancer treatment with a $7.8 billion buyout

MarketWatch

by Tomi Kilgore

February 23, 2026

AI-Generated Deep Dive Summary

Gilead Sciences has announced a $7.8 billion deal to acquire the remaining shares of biotech company Arcellx, sending Arcellx’s stock soaring toward record highs. This move underscores Gilead’s confidence in Arcellx’s lead candidate, anti-cel, a treatment for multiple myeloma that has shown promising results in Phase 1 and Phase 2 trials. The acquisition is expected to solidify Gilead’s position in the oncology space, particularly as anti-cel approaches potential FDA approval by December. The deal highlights Gilead’s strategic focus on innovative therapies, especially those with demonstrated efficacy. Arcellx had already been collaborating with Gilead on the development of anti-cel, which has shown “deep and durable” responses in clinical trials. This collaboration likely influenced Gilead’s decision to acquire the company outright, ensuring full control over a promising treatment with significant market potential. The acquisition also reflects the growing trend of big pharmaceutical companies partnering or acquiring smaller biotech firms to bolster their pipelines. By investing heavily in Arcellx, Gilead is positioning itself as a leader in next-generation cancer treatments. The $7.8 billion valuation far exceeds Arcellx’s current market cap, signaling strong confidence in its future prospects and the potential for anti-cel to become a groundbreaking treatment. For investors and finance enthusiasts, this deal underscores the lucrative opportunities in the pharmaceutical sector, particularly in oncology. Such mergers often drive significant gains for acquired companies’ shareholders, as seen with Arcellx’s stock surge. This transaction also highlights the importance of clinical trial results in driving merger activity, as positive data can lead to premium valuations and strategic acquisitions.

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Originally published on MarketWatch on 2/23/2026