Gilead CEO says company has reached ‘critical mass’ in oncology and inflammation; acquires 3 biotechs this year

Gilead Sciences has reached “critical mass” in its expansion into oncology and inflammation, its CEO said.

According to U.S. biotech publication Fierce Biotech on the 16th (local time), Gilead CEO Daniel O’Day said, “We have a portfolio that can deliver from early research through development.”

Gilead completed three biotech acquisitions early this year, laying the groundwork for expansion in oncology and inflammation. It acquired CAR-T company Acelix for $7.8 billion, T-cell engager antibody specialist OroMedison for up to $2.2 billion, and German antibody-drug conjugate (ADC) company Tubulis for an upfront payment of $3.1 billion.

O’Day added that future mergers and acquisitions (M&A) would be limited to deals that complement the foundation built since just before he took the helm in 2019.

Gilead’s expansion into oncology and inflammation gained momentum around the time O’Day took over as CEO. In 2017, two years before he took the role, the company acquired cell therapy company Kite Pharma for $12 billion. In 2020, it bought Immunomedics for $21 billion, gaining blockbuster breast cancer treatment Trodelvy.

Gilead’s inflammation business is led by Livdelzi, a treatment for primary biliary cholangitis approved in 2024. Gilead acquired CymaBay Therapeutics for $4.3 billion six months before the approval, gaining the drug.

“We have more than doubled research and development (R&D) investment compared with when we joined the company 7 or 8 years ago,” O’Day said. “That meant we also had to increase the number of talented people working with us.” Gilead currently employs about 17,000 people worldwide, including 7,400 in California.

As part of its $32 billion investment plan in the U.S., Gilead opened a new 182,000-square-foot research center at its headquarters in Foster City, California. A nearby technical development center is under construction and is targeted to open by the end of 2027, while the biologics manufacturing facility “Chess” is scheduled for completion in 2029.

The new research center will focus on oncology and inflammation while continuing to prioritize viral diseases. “We source innovation from around the world,” O’Day said, citing the Tubulis acquisition as an example. Tubulis has been transformed into an ADC research hub based in Munich.

Chief Financial Officer Andrew Dickinson said, “The strength of our internal research portfolio and pipeline is unprecedented in Gilead’s history,” adding that “more of our future product launches will come from internal research.”

Dickinson confirmed that Gilead has no plans to expand its physical presence in China. The company’s base in China is in Shanghai, and it also has an office in Hong Kong.

Flavius Martin, senior vice president of research, said, “Innovation is global,” adding, “We are fully on a steady trajectory and will continue to build by complementing our portfolio.”

Not all of Gilead’s efforts in oncology and inflammation have succeeded. In May, the company discontinued a rheumatoid arthritis candidate it gained through its $405 million acquisition of MiroBio, and a phase 3 trial targeting TIGIT in cancer also failed, prompting Gilead to end its antibody partnership with Arcus Biosciences.

Even so, Gilead’s pipeline includes a range of candidates, including drugs in phase 1. “Gilead began 40 years ago with an idea about virology,” O’Day said. “Our story is just beginning.”