Gilead, LEO Pharma Enter Strategic Partnership To Accelerate Development Of Oral STAT6 Program

(RTTNews) - Gilead Sciences, Inc. (GILD) and LEO Pharma entered strategic partnership to develop and commercialize LEO Pharma's small molecule oral STAT6 (signal transducer and activator of transcription 6) programs for the potential treatment of patients with inflammatory diseases.

STAT6 is the specific transcription factor required for IL-4 and IL-13 cytokine signaling, which are clinically validated targets for Th2 mediated inflammatory conditions such as atopic dermatitis, asthma, and COPD, amongst many others.

With this agreement, Gilead will acquire LEO Pharma's comprehensive preclinical oral STAT6 small molecule inhibitors and targeted protein degraders. Gilead will lead further development efforts for the oral programs, while LEO Pharma will lead development for potential topical formulations of STAT6 inhibitors.

As per the deal terms, Gilead will have global rights to develop, manufacture, and commercialize the small molecule oral STAT6 program. LEO Pharma will have the option to potentially co-commercialize oral programs for dermatology outside the United States. LEO Pharma will hold exclusive global rights to STAT6 topical formulations in dermatology.

LEO Pharma is eligible to receive up to $1.7 billion in total payments, including an upfront payment of $250 million. LEO Pharma may also get tiered royalties ranging from high single-digit to mid-teens on sales of oral STAT6 products. Gilead may receive tiered royalties ranging from high single-digit to mid-teens on sales of topical STAT6 products.

Gilead specified that the transaction with LEO Pharma is expected to reduce Gilead's GAAP and non-GAAP 2025 EPS by approximately $0.15 - $0.17.