BREAKINGVIEWS-An $8 bln pharma deal prices patent fears

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Arcellx, Inc.

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Gilead Sciences, Inc.

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Robert Cyran

NEW YORK, Feb 23 (Reuters Breakingviews) - Big drug companies could lose exclusivity rights on treatments accounting for most of their current revenue within a decade. That’s sending the likes of Gilead scrambling for new therapies. The pricey purchase of partner Arcellx indicates just how heated the hunt may become.

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CONTEXT NEWS

Gilead Sciences said on February 23 that it had agreed to buy Arcellx for $115 a share in cash, as well as a contingent value right worth $5 a share if the seller's lead therapy for multiple myeloma reaches cumulative sales of $6 billion by the end of 2029. The implied equity value is $7.8 billion at closing.

Bank of America and Morgan Stanley served as financial advisors to Gilead. Centerview Partners advised Arcellx.

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