Power Alley: Gilead To Pay Up, For Arcellx: As A CAR-T Rival To JNJ Franchises...

The next-gen immuno therapy wars just keep rumbling onward. JNJ will now face a potentially very formidable competitor in the CAR-T space.

Here's the latest, from Fierce -- in the power alley (and a bit):

. . .Gilead Sciences has struck a deal to buy Arcellx for $7.8 billion to take full control of a CAR-T cell therapy that is on the cusp of approval.

Arcellx partnered with Gilead to develop the BCMA-directed CAR-T anitocabtagene autoleucel (anito-cel) in 2022. Gilead invested in Arcellx as part of the agreement and, having invested again when amending the deal in 2023, owns 11.5% of the company. With Gilead on the hook for $530 million in milestones for anito-cel, analysts had speculated about a potential buyout.

Gilead made its move Monday, agreeing to pay $115 per share in cash for Arcellx. The offer represents a 68% premium to Arcellx’s 30-day volume-weighted average share price. Arcellx shareholders will receive another $5 per share if cumulative global anito-cel sales hit $6 billion by the end of 2029. Gilead CEO Daniel O’Day discussed the buyout in a statement. . . .

Pricey -- but probably a pretty savvy bet. Onward, grinning into Wednesday afternoon -- at Union Station.

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