Gilead Sciences Inc. announced it will acquire German biotechnology company Tubulis for up to $5 billion, marking a significant expansion of the pharmaceutical giant's cancer drug development capabilities.

The acquisition of the Germany-based cancer biotech is designed to bolster Gilead's oncology pipeline as the company seeks to diversify beyond its core antiviral treatments. Tubulis specializes in developing antibody-drug conjugates, a class of targeted cancer therapies that combine antibodies with potent cell-killing drugs.

The deal structure includes both upfront payments and potential milestone-based payments that could reach the $5 billion total, though specific terms of the transaction were not immediately disclosed. The acquisition is subject to customary closing conditions and regulatory approvals.

Gilead has been actively expanding its presence in oncology through strategic acquisitions and partnerships in recent years. The company, best known for treatments for HIV and hepatitis, has been working to build a stronger position in cancer therapeutics as part of its long-term growth strategy.

Tubulis brings expertise in antibody-drug conjugate technology, which represents one of the fastest-growing segments in cancer drug development. These therapies are designed to deliver cytotoxic drugs directly to cancer cells while minimizing damage to healthy tissue.