Gilead acquires German biotech Tubulis for USD5B in major push into cancer drug development

GERMANY—Gilead Sciences is strengthening its foothold in the lucrative cancer therapeutics market by acquiring Tubulis, a German antibody-drug conjugate (ADC) specialist, in a transaction valued at up to USD 5 billion

The US pharmaceutical giant will initially pay USD3.15 billion upfront, with an additional USD1.85 billion contingent on achieving certain milestones.

The deal is expected to close during the second quarter of 2026, at which point Tubulis will operate as Gilead’s dedicated ADC research division.

The Prize Assets

Tubulis brings a compelling pipeline to Gilead, anchored by TUB-040, a promising cancer candidate currently undergoing Phase Ib/II clinical trials.

This topoisomerase-I inhibitor targets platinum-resistant ovarian cancer and non-small cell lung cancer, having demonstrated encouraging safety and efficacy data in early trials last October.

In addition to TUB-040, Gilead acquires TUB-030, a separately targeted ADC designed to treat various solid tumours, alongside additional proprietary assets targeting undisclosed cancer indications.

Daniel O’Day, Gilead’s chief executive, characterised the acquisition as a watershed moment for the company’s oncology expansion.

He pointed out that Tubulis offers a promising treatment option for ovarian cancer patients, along with an advanced ADC platform and early-stage projects for future development.

A Strategic Evolution

This acquisition represents a natural progression of Gilead’s deepening relationship with Tubulis.

The two companies began collaborating in 2024 through an option-and-license agreement valued at up to USD 465 million, which granted Gilead access to Tubulis’ proprietary ADC platforms.

O’Day acknowledged that the two-year partnership had generated sufficient confidence in both the companies’ scientific programmes and Tubulis’ research capabilities to justify the full acquisition.

Tubulis has attracted significant investment interest independently, having raised USD361 million in Series C funding in October 2025.

Bristol Myers Squibb demonstrated comparable confidence in the German biotech’s technology by entering a licensing agreement in 2023, committing USD23 million upfront and pledging more than USD1 billion in milestone payments.

Gilead’s Expanding Oncology Portfolio

The Tubulis deal marks Gilead’s third major merger and acquisition transaction in 2026 alone.

Earlier this year, the company acquired immunotherapy developer Arcellx for USD7.8 billion in February, followed by a USD2.2 billion transaction to purchase T-cell engager specialist Ouro Medicines in March.

Notably, Gilead’s previous ADC investment proved exceptionally profitable.

The company acquired Immunomedics in 2020 for USD 21 billion, gaining the cancer drug Trodelvy, which generated USD 1.4 billion in global sales during 2025, representing a 6% increase from the previous year.

The ADC sector itself continues to flourish, with market analysts projecting compound annual growth of 25.16% through 2031, ultimately reaching USD65.2 billion in annual sales.