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(Sharecast News) - Shares in Arcellx soared on Monday, after the US biotech agreed to be taken over by Gilead Sciences in a near $8bn deal.
Under the terms of the deal, California-based Gilead will pay $115 per share in cash and one contingent value of $5 per share, giving Arcellx - a specialist in innovative immunotherapies for patients with cancer and other incurable diseases - an implied equity value of $7.8bn.
Arcellx already has an existing collaboration deal with Gilead-owned company Kite to co-develop and co-commercialise its lead pipeline candidate, anitocabtagene autoleucel (anito-cel), a CAR T-cell treatment for multiple myeloma.
Daniel O'Day, chief executive of Gilead, said the acquisition "reflects our conviction in the potential of anito-cel and our intention to move with speed so we can make the post of that potential for patients with multiple myeloma.
"Beyond this potential launch this year, anito-cel could become a foundational treatment for multiple myeloma over time, including earlier lines of therapy."
The company currently expects that once the treatment has been approved by the US Food and Drug Administration, anito-cel will be earnings per share accretive from 2028 onwards.
Rami Elghandour, Arcellx chief executive, said: "Kite is well-positioned to maximise access to anito-cel, benefiting more patients, and the company's commitment to be a leader in the cell therapy is one I admire."
As at 1245 GMT, Arcellx had rocketed 80% in pre-market trading, while Gilead had eased 1%.
The deal, which is expected to close in the second quarter of this year, remains subject to regulatory approvals. Gilead already holds an 11.5% stake in the Arcellx.
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