So here's Gilead Sciences Gilead Sciences Inc. (GILD) again, opening its checkbook. The company announced on Tuesday that it's buying Tubulis GmbH for $3.15 billion in cash, with another $1.85 billion on the table if certain milestones are hit. And, in what's becoming a familiar pattern, the stock dipped a bit on the news.
The Foster City-based biotech giant is after Tubulis for its antibody-drug conjugate (ADC) called TUB-040, a promising treatment for ovarian cancer. Tubulis has two programs in clinical trials for solid tumors, but TUB-040 is the crown jewel that Gilead wants to slot into its oncology pipeline. Think of it as Gilead buying a very expensive, very promising lottery ticket for its cancer drug portfolio.
And it's not just Tubulis getting paid. Evotec SE Evotec SE (EVO), which owns a 3.14% stake in Tubulis, is in for a nice payday. It's expected to get about $100 million upfront when the deal closes and could pocket up to another $58 million if those milestone payments come through. Evotec was an investor in Tubulis' Series B financing back in 2022 and again in a 2024 round, so this exit is a pretty good return on that bet.
Gilead's Shopping Spree Isn't Slowing Down
If this deal feels like part of a pattern, that's because it is. Gilead has been on a bit of an acquisition binge lately, reshaping its pipeline in two key areas: oncology and inflammation.
Just last month, the company said it was buying Ouro Medicines for $1.675 billion upfront (plus up to $500 million in milestones) to get its hands on a drug called OM336. That one's a bispecific T cell engager designed to treat severe autoimmune diseases, and it's already showing promise in clinical studies. So that's Gilead bulking up its inflammation portfolio.
And back in February, Gilead made an even bigger move in cancer. It agreed to acquire Arcellx Inc. Arcellx Inc. (ACLX) in a deal worth about $7.8 billion. The structure was $115 per share in cash plus a $5-per-share contingent value right. Gilead already owns about 11.5% of Arcellx, so this is about bringing a next-generation myeloma drug fully in-house to fast-track its long-term oncology prospects.
Put it all together, and you've got Gilead spending over $12 billion in announced deal value in just a few months. That's a serious commitment to building out these therapeutic areas.
What's the Market Saying About All This?
Financially, Gilead's stock was down about 1.35% to $138.24 on Tuesday when the news broke. Let's break down what the charts are telling us.
At that price, the stock is trading a little below its 20-day and 50-day simple moving averages, which suggests some short-term weakness. But it's still above its 100-day and 200-day averages, which points to a positive longer-term trend. The relative strength index (RSI) is sitting at a neutral 48.14, while the MACD indicator is actually flashing a slightly bullish signal.
For the traders in the room, key resistance sits at $149.50, and support is around $134.00. The big picture? Gilead's stock is up over 31% in the last 12 months, and it's well above its 200-day moving average. So even with today's dip, the long-term outlook still looks pretty solid. The market might be catching its breath after another big acquisition announcement, but the underlying trend is still pointing up.
In the end, Gilead is making a clear bet: it's willing to spend billions now to build a stronger pipeline for the future. Whether that future includes blockbuster cancer and autoimmune drugs remains to be seen, but they're certainly putting their money where their mouth is.
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