Gilead makes another acquisition, planning to acquire Tubulis for up to $5 billion to strengthen ADC deployment

Gilead Sciences said on Tuesday local time that it will acquire German privately held biotechnology company Tubulis GmbH for a price of up to $5 billion. The U.S. pharmaceutical giant is seeking to bolster its product pipeline by acquiring high-value, experimental cancer drugs described as “guided missiles.”

This marks the latest move in Gilead’s latest round of acquisition momentum. Facing pressure as its core product patents near expiration and sales of its COVID-19 treatment drugs decline, the company is actively expanding beyond key business areas to find room for growth.

In February this year, Gilead acquired partner Arcellx for up to $7.8 billion, its largest deal since 2020, with the aim of strengthening its cancer treatment product line. Last month, it also agreed to acquire privately held biotechnology company Ouro Medicines for more than $2 billion in order to expand its immunology drug pipeline.

With this acquisition, Gilead will gain antibody-drug conjugates (ADCs) from Tubulis. As reported, antibody-drug conjugates are targeted cancer therapies likened to “guided missiles.” As the name suggests, each ADC consists of three components: a specific antibody, a potent cytotoxic agent, and a linker that connects the two. By specifically recognizing antigens on the surface of tumor cells, an ADC can precisely deliver the toxin to cancer cells while reducing damage to normal cells.

In 2020, Gilead acquired Immunomedics for $21 billion, entering the ADC field through that deal, which gave it control of the anti-TROP-2 ADC drug Trodelvy.

ADCs are also one of the hottest areas in the pharmaceutical industry. Tubulis’ core asset, TUB-040, is currently in early-stage development. The drug targets the NaPi2b protein (a protein found on the surface of certain cancer cells) for the treatment of ovarian cancer and non-small cell lung cancer. Another experimental drug, TUB-030, is being studied across multiple types of solid tumors.

Last year, Tubulis reported that TUB-040 achieved a 59% objective response rate in PROC, prompting the company to plan to move quickly into pivotal trials while also expanding to earlier disease stages and more tumor types.

Gilead CEO Daniel O’Day said, “The agreement to acquire Tubulis is an important milestone for Gilead as it continues to advance in oncology.”

Under the terms of the deal, Gilead will pay $3.15 billion in cash as an upfront consideration when the transaction is completed, along with up to $1.85 billion in milestone payments.

The two companies previously reached a licensing collaboration agreement for the development of ADC drugs. Tubulis has also established a partnership with Bristol Myers Squibb. As reported, riding high on the hot ADC track, Tubulis completed a $401 million Series C financing last year.

The transaction is expected to be completed in the second quarter of 2026, at which time Tubulis will continue to operate as an internal ADC research organization within Gilead.

(Source: Caixin Global)