Gilead Sciences, Inc.’s GILD Cell Therapy franchise currently comprises Yescarta and Tecartus. Sales from this unit decreased 7% year over year to $1.8 billion (in 2025) due to ongoing competitive headwinds.
Yescarta sales decreased 5% year over year to $1.5 billion, primarily as a result of in- and out-of-class competition.
Tecartus sales decreased 15% to $344 million due to in-class competition.
GILD anticipates competitive pressure in cell therapies’ business to continue in 2026, including new market entrants in several countries outside the United States.
In a move to combat this decline, Gilead recently announced that it will acquire a clinical-stage biotechnology company, Arcellx ACLX, for $115 per share in cash plus a $5 contingent value right, implying an equity value of $7.8 billion.
Gilead’s subsidiary, Kite, already has a collaboration to co-develop and co-commercialize Arcellx’s lead pipeline candidate, anitocabtagene autoleucel (anito-cel).
A biologics license application seeking approval of anito-cel as a fourth-line treatment for patients with relapsed or refractory multiple myeloma has been accepted by the FDA, with a PDUFA decision expected in December 2026, providing a near-term commercial catalyst and potential expansion into earlier treatment settings.
Beyond anito-cel, Arcellx’s proprietary D-Domain platform provides long-term strategic value for next-generation CAR-T and in vivo cell therapies.
The acquisition gives GILD full control of anito-cel, streamlining development and commercialization economics by eliminating profit-sharing, milestone payments and royalties, thereby enhancing long-term margin potential and value capture.
The acquisition, expected to be closed in the second quarter of 2026, is projected to be earnings accretive from 2028.
While GILD has a dominant HIV franchise led by flagship HIV therapies — Biktarvy for treatment and Descovy for prevention — it is looking to ramp up its oncology franchise and diversify its revenue base.
Competition for GILD in the Cell Therapy Space
Biotech giant Bristol Myers BMY has a strong cell-therapy portfolio with therapies like Breyanzi and Abecma.
Breyanzi (lisocabtagene maraleucel) is a CAR T cell therapy developed for the treatment of relapsed or refractory large B-cell lymphoma, chronic lymphocytic leukemia, follicular lymphoma and mantle cell lymphoma.
Breyanzi surpassed $1 billion in annualized sales in 2025, reflecting adoption in large B-cell lymphoma and recent label expansions. The strong uptake of Breyanzi boosted BMY’s top line.
Another approved CAR T therapy is Novartis’ NVS Kymriah, which is approved for acute lymphoblastic leukemia that is either relapsing or refractory. It is also used in patients with LBCL or FL, two types of non-Hodgkin lymphoma, who have relapsed or are refractory after having at least two other kinds of treatment.
NVS’ Kymriah recorded sales of $381 million in 2025, down 14% from 2024 due to competitive pressure.
NVS is also developing another CAR T cell therapy, YTB323, for LBCL.
GILD’s Price Performance, Valuation and Estimates
Shares of GILD have surged 30.3% in the past year compared with the industry’s growth of 15.4%.
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Going by the price/earnings ratio, GILD’s shares currently trade at 16.41x forward earnings, higher than its mean of 11.32x but lower than 17.89x for the large-cap pharma industry.
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The bottom-line estimate for 2026 has moved up to $8.66 from $8.60 in the past 30 days, while that for 2027 has moved north to $9.63 from $9.33 in the same time frame.
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GILD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Novartis AG (NVS): Free Stock Analysis Report
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Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
Arcellx, Inc. (ACLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).