To develop and market oral STAT6 inhibitors for inflammatory illnesses, Gilead Sciences (GILD, Financials) has teamed up with LEO Pharma for a $1.7 billion investment, the firms said Saturday.
Gilead will pay LEO Pharma $250 million upfront under the arrangement; further milestone payments may boost the total to $1.7 billion. While LEO Pharma maintains worldwide rights to topical formulations in dermatology and may co-commercialize oral medicines for dermatology outside the United States, Gilead will receive exclusive global rights to the oral STAT6 program comprising targeted protein degraders.
Driven inflammatory disorders like asthma, chronic obstructive pulmonary disease, and atopic dermatitis, the cooperation centers on STAT6, a transcription factor associated with IL-4 and IL-13 cytokine signaling. Gilead will spearhead the development of oral treatments; LEO Pharma will manage topical treatments.
A statement from Gilead indicates that the deal is likely to lower its 2025 GAAP and non-GAAP earnings per share by $0.15 to $0.17. While Gilead may earn royalties on topical formulations, LEO Pharma will also be eligible for tiered royalties ranging from high single digits to mid-teens on oral STAT6 product sales.
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