Gilead’s $5 Billion Tubulis Deal Boosts Evotec Stake

The US pharmaceutical company Gilead is acquiring the German biotech firm Tubulis for up to five billion dollars, a deal that provides a significant benefit to the Hamburg-based drug discovery company Evotec, which holds a 3.14 percent stake in Tubulis.

Evotec expects to receive initial proceeds of around 100 million dollars from the sale of its stake, according to a company announcement on Tuesday.

Evotec Secures Significant Payout and Future Milestones

In addition to this upfront payment, Evotec could receive further milestone payments of up to 58 million dollars. Gilead stated separately that it will initially pay 3.15 billion dollars in cash. An additional 1.85 billion dollars may be paid if certain milestones are achieved. The transaction is expected to be completed in the second quarter of 2026.

Evotec CEO Christian Wojczewski described the deal as an important milestone for Tubulis. He emphasized the company’s experience in researching and developing antibody-drug conjugates, noting the strong potential of this technology for creating improved cancer therapies.

Gilead’s Strategic Push into Cancer Therapies with ADC Technology

Through the acquisition, Gilead gains access to Tubulis’s experimental cancer treatments. These antibody-drug conjugates are often described as guided missiles because they deliver chemotherapy directly to cancer cells while minimizing damage to healthy tissue.

The deal comes at a time when the biotech and pharmaceutical industry has experienced a turbulent period, particularly since Donald Trump took office. However, the sector is currently showing renewed appeal to investors.

For Gilead, this acquisition is part of a broader strategy to strengthen its portfolio, especially as it faces declining sales of its COVID-19 drug Veklury and upcoming patent expirations. The company has recently pursued several acquisitions to expand its cancer treatment capabilities.

In February, Gilead acquired its partner Arcellx for up to 7.8 billion dollars. This move was followed last month by the purchase of the biotech company Ouro Medicines for more than 2 billion dollars, further reinforcing its focus on oncology.

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(Featured image by Marek Studzinski via Unsplash)

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