Arcellx’s stock set to surge after Gilead makes $200 million investment at a 30% premium

Shares of Arcellx Inc.
ACLX,
+5.31%
were set to surge Wednesday, after biotechnology company announced a $200 million equity investment by Gilead Sciences Inc.’s
GILD,
+0.43%
Kite as part of an expanded collaboration. Under terms of the investment, Gilead will buy 3.24 million Arcellx shares for $200 million, which will give Gilead a 13% stake in Arcellx, and extend Arcellx’s cash runway into 2027. The investment represents a price of $61.68 for Arcellx’s stock, which is 29.9% above Tuesday’s closing price of $47.47. Kite has exercised its option to negotiate a license for Arcellx’s multiple myeloma treatment. Arcellx’s stock has run up 32.2% over the past three months through Tuesday and Gilead shares have lost 6.2%, while the S&P 500
SPX,
+0.16%
has edged up 1.3%.