Gilead signs up to $415M deal with Tubulis for ADC

Gilead, a prominent biopharmaceutical company, is forging a new partnership in the competitive field of antibody-drug conjugates (ADCs), a specialized form of chemotherapy. This move comes after its $21 billion acquisition of another ADC developer, which has not yielded the expected results. Gilead is now investing $20 million upfront to collaborate with Tubulis, a biotech firm based in Munich that secured $138 million in funding earlier this year. Tubulis aims to establish itself as an independent global leader in the ADC domain, according to CEO Dominik Schumacher.

On Tuesday, the companies announced their plan to co-develop a new ADC targeting an unspecified solid tumor. Tubulis will handle the discovery and development phases, focusing on designing a topoisomerase I inhibitor-based ADC candidate. Gilead retains the option to join the program for an additional $30 million and could pay up to $365 million in milestone payments, along with tiered royalties if the drug reaches the market. Flavius Martin, Gilead's Executive Vice President of Research, expressed optimism that the collaboration could enhance the therapeutic potential of ADCs.

In 2020, Gilead made headlines by acquiring Immunomedics for $21 billion, aiming to strengthen its position in the ADC sector. However, the flagship drug from this acquisition faced significant challenges. In October, Gilead withdrew Trodelvy's accelerated approval for certain types of urothelial cancer after consultations with the FDA. Additionally, the company halted the development of Trodelvy for specific forms of non-small cell lung cancer, resulting in a $1.75 billion impairment charge in the third quarter.

Tubulis is focused on refining each component of an ADC, including the linkers, the antibody, and the payload. CEO Dominik Schumacher has emphasized that the company is not interested in making minor adjustments but rather in having the flexibility to customize ADCs. This year, Tubulis entered clinical trials with a NaPi2b-targeting ADC for ovarian cancer and lung adenocarcinoma. The company also licensed a CD30 ADC to Oncoteq last year under undisclosed terms and entered a $22 million upfront agreement with Bristol Myers Squibb in 2023.

Tubulis has grown to employ over 60 people and expanded its operations to the United States, opening a location in the Cambridge Innovation Center in the Boston area earlier this year.