On December 9, 2022, clinical-stage biotechnology company Arcellx and Gilead-owned biopharmaceutical company Kite announced a global strategic collaboration to develop and commercialize Arcellx’s lead late-stage myeloma candidate. Wilson Sonsini Goodrich & Rosati advised Arcellx on the transaction.

The deal includes up to $3.9 billion in total contingent consideration with Kite providing Arcellx $225 million in an upfront payment, along with a $100 million equity investment. The companies will together share development, clinical trial and commercialization costs for Arcellx’s lead late-stage product candidate CART-ddBCMA, which focuses on treating patients with relapsed or refractory multiple myeloma. The companies will jointly commercialize the product and split U.S. profits. Kite will commercialize the product outside of the United States and Arcellx will receive royalties. The transaction is expected to close in the first quarter of 2023.

The Wilson Sonsini team that assisted Arcellx includes:

Technology Transactions - Biotech
Norm Hovijitra
Ian Edvalson
Matt Wiltermuth
John Wehrli
Colin Bosch
Kexi Wang

Corporate
Dan Koeppen
Rob Wernli
Jennifer Fang
David Sharon
Carole Rosenberg

Tax
Greg Broome

For more information, please see Arcellx’s news release.