By Colin Kellaher
Gilead Sciences has agreed to buy German clinical-stage biotechnology company Tubulis for up to $5 billion in a deal that bolsters the biopharmaceutical company's oncology pipeline.
Gilead on Tuesday said it will pay an initial $3.15 billion in cash for Tubulis, which is developing next-generation antibody-drug conjugates, or ADCs, along with up to $1.85 billion in contingent milestone payments.
Gilead said TUB-040, Tubulis' lead asset, is an ADC in Phase 1b/2 development for platinum-resistant ovarian cancer and non-small cell lung cancer.
The Foster City, Calif., company said the deal also includes TUB-030, an ADC that has shown promising initial clinical data across various solid tumor types.
ADCs work like guided missiles by pairing antibodies with toxic agents to fight cancer.
Gilead and Tubulis inked an exclusive option and license agreement in 2024 aimed at discovering and developing an ADC against a solid tumor target.
Gilead said it plans to fund the acquisition, slated to close in the second quarter, with cash on hand and senior unsecured notes.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
04-07-26 0853ET
