-- Gilead Sciences (GILD) has agreed to acquire Germany-based Tubulis for up to $5 billion, aiming to expand its oncology pipeline.
Gilead will pay $3.15 billion in upfront cash and up to $1.85 billion in milestone payments, the American biopharmaceutical firm said in a statement Tuesday.
Tubulis' lead asset, TUB-040, is undergoing a trial for platinum-resistant ovarian cancer and non-small cell lung cancer, according to the statement. In October, Tubulis announced "positive" first-in-human data from TUB-040's trial.
TUB-030, another anti-body drug conjugate, or ADC, being developed by Tubulis, has shown "promising" initial clinical data across various solid tumor types, Gilead said.
"The company brings a clinical-stage candidate that is a potential new treatment for ovarian cancer, as well as a next-generation ADC platform and a promising early pipeline," Gilead Chief Executive Daniel O'Day said. "Today's agreement follows a two-year collaboration with Tubulis, which has given us strong conviction in their programs and research capabilities."
Earlier this year, Gilead agreed to buy cancer therapy partner Arcellx (ACLX) and privately held biotechnology company Ouro Medicines.
The Tubulis deal, which is subject to "expiration or termination of certain regulatory filings," is anticipated to complete in the current quarter, according to the statement.
"Through our existing collaboration, Gilead has already seen the potential of our technologies and together, we are well positioned to accelerate the development of our ADC pipeline," Tubulis CEO Dominik Schumacher said.
Following deal completion, Tubulis will operate as an ADC research unit within Gilead, according to the statement.
Shares of Gilead were down 1.3% in Tuesday trade.
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