Gilead’s Kite Expands Arcellx Pact with $285M Equity Investment, Upfront Cash
Summary
Pictured: Gilead signage outside its office in California/iStock, Sundry PhotographyGilead subsidiary Kite on Wednesday broadened the scope of its existing collaboration with Arcellx. The two companies will now also evaluate the investigational cell therapy CART-ddBCMA, originally being developed for multiple myeloma, as a treatment for lymphomas.Kite also exercised its option to negotiate a license for an additional multiple myeloma program from Arcellx, dubbed ACLX-001.Under the terms of the expanded deal, Kite will make an upfront, non-dilutive payment of $85 million once the transaction is closed. The partners anticipate to close the deal around the years end, pending regulatory clearances and other customary conditions.Arcellx will also receive a $200 million equity investment from Kite, which will purchase 3,242,542 shares of the Maryland biotechs common stock. For $225 million upfront, a $100 million equity investment and up to $3.9 billion in contingent considerations, Kite bought the right to co-develop and co-commercialize CART-ddBCMA, an investigational cell therapy made up of genetically modified autologous T cells that target multiple myeloma.The partners are currently running the Phase II iMMagine-1 trial, testing CART-ddBCMA in more than 100 patients with relapsed or refractory multiple myeloma. The FDA lifted its regulatory pause in August 2023 after Arcellx retrained its clinical sites.Tristan Manalac is an independent science writer based in Metro Manila, Philippines.