(GILD) and its cell therapy subsidiary Kite announced that they have entered into a definitive agreement under which they have agreed to acquire Cell Design Labs, Inc., gaining new technology platforms that will enhance research and development efforts in cellular therapy.
It is the second move by Gilead in recent months to invest in cutting-edge cancer treatments known as vehicle T cell therapy.
Gilead will acquire all outstanding Cell Design Labs shares, including the 12.2% that are now held by Kite.
Kite's treatment targets a type of non-Hodgkin's lymphoma called diffuse large B-cell lymphoma.
The deal includes an upfront payment of about $175 million and additional milestone payments of up to $322 million to be paid to Cell Design Labs shareholders other than Kite, Gilead said.
Shares of Gilead rose marginally after the bell.