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Gilead Sciences is nearing an acquisition of autoimmune disease-focused biotech Ouro Medicines for up to $2bn, as the California-based drugmaker kick-starts a dealmaking spree emboldened by a near-record high share price.
Under the terms of the deal being discussed, Gilead will pay privately held Ouro’s investors roughly $1.5bn upfront in cash and at least an extra $500mn if certain clinical trial milestones are hit, said people familiar with the matter.
Talks are at an advanced stage and a deal could be announced in the coming days, the people said. However, the terms and timeline could shift.
Gilead and Ouro did not immediately respond to requests for comment.
If a deal materialises, it will be Gilead’s second acquisition in the past month following its $7.8bn takeover of biotech Arcellx, with which it had an existing partnership to develop a novel cell therapy for patients with the blood cancer multiple myeloma.
Unencumbered by imminent drug patent expirations and emboldened by the strong performance of its HIV medicines franchise, Gilead is positioning itself to strike more biotech deals under chief executive Daniel O’Day after a quiet couple of years.
O’Day in February said before the Arcellx deal that while Gilead “may not have the urgency of other companies in the sector . . . that we very much want to continue to add to our pipeline with appropriate [mergers and acquisitions] over the course of the coming years as well”.
Shares in Gilead are up 28 per cent over the past year, giving the drugmaker a market capitalisation of $170.5bn, eclipsing that of rival pharmaceutical group Pfizer.
Ouro is testing an antibody treatment in early-stage trials that could be used to combat major autoimmune diseases such as lupus and rheumatoid arthritis. The biotech’s investors include private equity group TPG, UK drugmaker GSK and venture capital firm Monograph Capital. The company raised $120mn in a private funding round in January 2025.
Biotech dealmaking has been booming in recent months as the wider pharmaceutical industry grapples with hundreds of billions of dollars of medicines collectively coming off patents in the next few years.
Under the leadership of O’Day, Gilead, best known as an innovator in the treatment of HIV with Biktarvy and Yeztugo, has focused its dealmaking strategy on acquisitions that boost its oncology portfolio, including its $21bn purchase of Immunomedics in 2020 and $4.3bn takeover of CymaBay Therapeutics in 2024.
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