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

Why is Gilead frequently acquiring biotech companies under patent expiration pressure?

Cailian Press, April 7 (Editor: Niu Zhanlin) Gilead Sciences announced on Tuesday local time that it will acquire the German privately-held biotech company Tubulis GmbH for up to $5 billion. This American pharmaceutical giant is seeking to enrich its product pipeline by acquiring high-value experimental anti-cancer drugs known as “guided missiles.”

This marks the latest move in Gilead’s new wave of acquisitions. Facing the imminent patent expiration of core products and declining sales of COVID-19 treatments, the company is actively expanding growth opportunities outside its key business areas.

In February this year, Gilead acquired partner Arcellx for up to $7.8 billion, its largest deal since 2020, aiming to strengthen its cancer treatment product line. Last month, the company agreed to acquire privately-held biotech Ouro Medicines for over $2 billion to expand its immuno-oncology drug pipeline.

Through this acquisition, Gilead will gain access to Tubulis’s antibody-drug conjugate (ADC) (. It is reported that ADCs are targeted anti-cancer therapies likened to “guided missiles.” As the name suggests, each ADC consists of three parts: a specific antibody, a potent cytotoxic agent, and a linker connecting the two. By specifically recognizing antigens on tumor cell surfaces, ADCs can precisely deliver toxins to cancer cells while reducing damage to normal cells.

Gilead acquired Immunomedics in 2020 for $21 billion, entering the ADC field, which gave it control over the anti-TROP-2 ADC drug Trodelvy.

ADCs are also one of the hottest areas in the pharmaceutical industry. Tubulis’s core asset, TUB-040, is currently in early development. This drug targets the NaPi2b protein ), a protein found on the surface of certain cancer cells (, used to treat ovarian cancer and non-small cell lung cancer. Another experimental drug, TUB-030, is under investigation for various solid tumor types.

Last year, Tubulis reported a 59% objective response rate for TUB-040 in PROC, prompting the company to plan for rapid advancement to pivotal trials and expansion into early-stage diseases and additional tumor types.

Gilead CEO Daniel O’Day stated: “The acquisition of Tubulis is an important milestone in Gilead’s ongoing efforts in oncology.”

According to the deal terms, Gilead will pay $3.15 billion in cash as an upfront consideration, payable upon closing, with additional milestone payments of up to $1.85 billion.

The two companies had previously reached licensing agreements for ADC drug development. Tubulis also established a partnership with BMS. It is reported that Tubulis, thriving in the highly competitive ADC sector, completed a $401 million Series C financing last year.

The transaction is expected to close in Q2 2026, at which point Tubulis will continue to operate as an internal ADC research organization within Gilead.

(Cailian Press, Niu Zhanlin)