Gilead Sciences to buy German biotech group Tubulis for up to $5bn

(Sharecast News) - California-based Gilead Sciences said on Tuesday that it has agreed to buy German clinical stage biotechnology group Tubulis for up to $5bn. Gilead said the acquisition builds on its oncology pipeline, focused on addressing areas of high unmet need.

The deal significantly expands Gilead's ADC capabilities, it said, by adding next-generation assets and platforms designed to more selectively deliver diverse payloads to tumours and maximise patient benefit.

Tubulis' lead asset, TUB-040, a NaPi2b-directed topoisomerase-I inhibitor (TOPO1i) ADC, is currently in Phase 1b/2 development for platinum-resistant ovarian cancer and non-small cell lung cancer (NSCLC). Gilead will also buy TUB-030, a 5T4 targeted ADC, which has demonstrated promising initial clinical data across various solid tumour types.

Gilead chairman and chief executive Daniel O'Day said: "The agreement to acquire Tubulis is a significant milestone in Gilead's progress in oncology. 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.

"Today's agreement follows a two-year collaboration with Tubulis, which has given us strong conviction in their programs and research capabilities. Bringing this potential into Gilead would further expand what is already the strongest and most diverse pipeline in our company's history."

Under the terms of the deal, Gilead will buy all of the outstanding equity of Tubulis for $3.15bn in cash upfront. It will also pay up to $1.85bn in contingent milestone payments.

The transaction is expected to close in the second quarter of this year.