Gilead Invests Further in Arcellx, Extends Collaboration

By Colin Kellaher

Gilead Sciences is investing another $200 million in clinical-stage biotechnology company Arcellx as part of an expansion of the duo's collaboration to include lymphomas.

The companies on Wednesday said Gilead's Kite unit has exercised its option to negotiate a license for Arcellx's ARC-SparX program, ACLX-001, in multiple myeloma, and that they are expanding the scope of the collaboration launched late last year for Arcellx's CART-ddBCMA to include lymphomas.

Foster City, Calif., biopharmaceutical company Gilead, which last year made an initial equity investment of $100 million in Arcellx, will buy another 3.24 million share at $61.68 apiece, a 30% premium to Tuesday's closing price of $47.47 for the Gaithersburg, Md., company.

Arcellx said the investment, which will boost Gilead's stake to about 13%, will extend its cash runway into 2027.

Arcellx also will receive an upfront cash payment of $85 million at closing and will be eligible for potential milestone payments, the companies said.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

November 15, 2023 06:43 ET (11:43 GMT)

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