Kite punts millions more into Arcellx partnership

Adding to the collaboration agreed last December, Gilead Sciences’ (Nasdaq: GILD) subsidiary Kite has today announced it is expanding it collaboration with US biotech Arcellx (Nasdaq: ACLX). The latter’s shares were up nearly 14% at $54.00 in pre-market activity.

Kite has exercised its option to negotiate a license for Arcellx’ ARC-SparX program, ACLX-001, in multiple myeloma, which is comprised of ARC-T cells and SparX proteins that target BCMA. The companies have also expanded the scope of the collaboration for Arcellx’ CART-ddBCMA to include lymphomas.

Arcellx will receive a $200 million equity investment to purchase 3,242,542 shares of its common stock on closing of the deal, which is expected to extend the company’s cash runway into 2027. Following this investment, Gilead’s estimated ownership will be 13%. Arcellx will also receive an upfront non-dilutive cash payment of $85 million at closing and will become eligible for potential milestone payments, including the advancement of lymphoma and the license for ARC-SparX, as well as additional milestones, to offset prespecified development costs over a limited period of time.