Gilead to buy Germany's Tubulis for up to $5 billion to boost cancer pipeline

Gilead said on Tuesday it would acquire Germany-based Tubulis GmbH for up to $5 billion, as it looks to strengthen its cancer drugs pipeline.

This marks the latest in Gilead's acquisition spree. The company has been expanding beyond its key areas ‌for growth ⁠amid looming ⁠patent expiries and declining sales of its COVID-19 treatment.

In February, the U.S. drugmaker bought ​partner Arcellx for up to $7.8 billion, while last month it agreed to acquire privately ​held biotech firm Ouro Medicines in a deal worth more than $2 billion.


With the latest deal, Gilead will get access to Tubulis' experimental drugs, which belong to a class called antibody-drug conjugates (ADC), ⁠popularly known as "guided ‌missiles", that deliver chemotherapy directly to cancer cells while minimizing harm to healthy tissue.

We believe the Tubulis acquisition represents ⁠a strategically sound bolt-on that addresses Gilead's oncology pipeline growth needs, ​while securing differentiated next-gen ADC platform capabilities, said RBC ​Capital Markets analyst Brian Abrahams.

Tubulis' lead asset, TUB-040, which binds to NaPi2b, a protein found in certain cancer cells, is currently in early-stage development for a type of ovarian cancer and non-small cell lung cancer.

Another experimental drug, TUB-030, is being studied across various solid tumor types.

"The ‌agreement to acquire Tubulis is a significant milestone in Gilead's progress in oncology," said Gilead CEO Daniel O'Day.

Under ​the terms of ​the deal, Gilead ⁠will acquire all of the outstanding equity of Tubulis for $3.15 billion in upfront cash, payable at closing, and up to $1.85 billion in milestone payments.

Gilead's shares ​slipped 1.4% in early trading.

The companies have previously entered into licensing agreements to develop ADCs. Tubulis also has a partnership with Bristol-Myers Squibb

Following the close of the transaction, expected in the second quarter of 2026, Tubulis will operate as an ADC research organization within Gilead.