Biotech heavyweight Gilead Sciences is set to acquire a Rockville-area cancer therapy developer in a deal valued at nearly $8 billion.
The California-based drugmaker announced Monday that it will buy Arcellx, expanding a partnership that began in 2022 when its cell therapy unit, Kite Pharma, teamed up with the Maryland company to develop its lead blood cancer treatment, anito-cel.
Arcellx closed its Gaithersburg office in 2024, but still maintains a nearly 60,000-square-foot facility in Rockville.
Founded in Gaithersburg in 2014, Arcellx closed its original office there in 2024 and moved its headquarters to Redwood City, California. The company still maintains a nearly 60,000-square-foot facility in Rockville.
Arcellx did not respond to requests for comment on how the acquisition could affect its Maryland operations.
“We are fortunate to have found a world-class partner in Gilead, which has the expertise to carry forward Arcellx’s legacy,” Arcellx CEO Rami Elghandour said in a press release. “Kite is well-positioned to maximize access to anito-cel, benefiting more patients, and the company’s commitment to be the leader in cell therapy is one I admire.”
Arcellx went public in 2022, less than a year after raising $115 million in a Series C round to support its clinical trials.
The company raised money at the right time. 2021 was a record-setting year for venture funding. Since then, life sciences investors have grown more cautious, particularly with drug developers that can take years to generate revenue.
Maryland’s venture funding totals remain subdued compared with the pandemic-era peak, aside from a handful of mega-deals. Increasingly, drugmakers are turning to partnerships rather than traditional venture capital to finance development.
For example, Jeff Strovel, CEO of cancer therapeutics startup Irazu Oncology, told Technical.ly in January that he’s looking to large pharmaceutical companies in the US and abroad for backing — particularly as lapses in SBIR funding impact early-stage ventures.
“It’s not ideal,” Strovel said, “but you have to keep the company open.”
