Gilead to Acquire Tubulis for $3.15B
Leerink analyst Andrew Berens notes Gilead (GILD) announced plans to acquire Tubulis for $3.15B in cash plus up to $1.85B in contingent milestone payments for a total potential acquisition value of $5B. This acquisition serves as further validation of the antibody-drug conjugate space and should be a tailwind for other ADC platform companies including Sutro Biopharma (STRO), as well as Immunome (IMNM) and Zymeworks (ZYME) in the firm's coverage, Leerink says. This deal underscores the strategic value of an ADC discovery platform anchored to a lead asset to large pharma. However, while there are a number of similarities between Tubulis' platform and portfolio and that of Sutro, it is possible the acquisition price may have been supported by potential expansion of the Tubulis chemistry and technology beyond oncology and into inflammation and virology. Leerink believes Sutro represents a similar set-up, although earlier in clinical development and technological validation.
