Gilead Sciences Inc. (NASDAQ:GILD) shares are down on Tuesday as the company announced a $3.15 billion acquisition of Tubulis GmbH.

The Foster City, California-based firm aims to enhance its oncology pipeline. The acquisition adds TUB-040, a promising antibody-drug conjugate (ADC) for the treatment of ovarian cancer, to Gilead’s existing oncology portfolio.

Tubulis currently has two programs in clinical trials for solid tumor indications.

Gilead agreed to pay Tubulis for $3.15 billion in upfront cash, with additional contingent milestone payments of up to $1.85 billion.

Evotec SE (NASDAQ:EVO), which holds a 3.14% equity stake in Tubulis, is expected to receive some $100 million in upfront consideration upon closing.

The company is also eligible to receive up to approximately $58 million in additional contingent consideration in line with its equity participation and subject to the achievement of specified milestones.

Evotec took part in Tubulis' 60 million euros Series B financing round in May 2022, as well as a 128 million euros Series B2 round, which closed in March 2024.

Recent Deals Highlight Broader Pipeline Expansion Strategy

In March, Gilead Sciences said it is expanding its inflammation portfolio through a strategic acquisition.

Gilead agreed to acquire Ouro Medicines for $1.675 billion in upfront cash, with additional contingent milestone payments of up to $500 million.

The acquisition adds a clinical-stage bispecific BCMAxCD3 T cell engager, OM336, to Gilead’s portfolio.

The drug is designed to treat severe autoimmune diseases and has shown promising efficacy in clinical studies.

In February, Gilead agreed to acquire Arcellx Inc. (NASDAQ:ACLX) to enhance its long-term oncology prospects.

Deal consideration included $115 per share in cash and a $5-per-share contingent value right, totaling an implied equity value of $7.8 billion.

Gilead currently owns approximately 11.5% of Arcellx's outstanding common stock.

Gilead Technical Analysis

At $138.17, Gilead is trading 1.8% below its 20-day simple moving average (SMA) of $141.07, suggesting short-term weakness. The stock is also 4.3% below its 50-day SMA of $144.72, indicating a bearish trend in the intermediate term.

However, it is trading 3.2% above its 100-day SMA of $134.12, which may provide some support.

The relative strength index (RSI) is currently at 48.14, indicating a neutral momentum. The moving average convergence divergence (MACD) shows a bullish signal, as the MACD line at -1.6075 is above the signal line at -1.6459, suggesting potential upward momentum.

  • Key Resistance: $149.50 — This level may act as a barrier for upward movement.
  • Key Support: $134.00 — A critical level where buying interest could emerge.

Gilead’s 12-month performance shows a return of 31.24%, reflecting a strong upward trend over the past year.

Currently, the stock is positioned well above its 200-day SMA of $124.40, indicating a positive long-term outlook.

GILD Stock Price Activity: Gilead Sciences shares were down 1.35% at $138.24 at the time of publication on Tuesday, according to Benzinga Pro data.

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