Gilead Sciences, Inc. and LEO Pharma have entered into a strategic collaboration to advance and commercialize LEO Pharma's oral small molecule STAT6 (signal transducer and activator of transcription 6) programs, aimed at treating inflammatory diseases. STAT6 serves as a crucial transcription factor for IL-4 and IL-13 cytokine signaling, recognized as clinically validated targets for Th2-mediated inflammatory conditions such as atopic dermatitis, asthma, and COPD, among others.
Under this collaboration, Gilead will acquire LEO Pharma's extensive portfolio of preclinical oral STAT6 small molecule inhibitors and targeted protein degraders. Gilead will spearhead additional development efforts for the oral programs, while LEO Pharma will focus on developing potential topical formulations of STAT6 inhibitors.
According to the terms of the agreement, Gilead will gain global rights to develop, manufacture, and commercialize the oral STAT6 program. LEO Pharma retains the option to potentially co-commercialize the oral programs for dermatological applications outside the United States and will have exclusive global rights to topical STAT6 formulations for dermatology.
LEO Pharma stands to receive up to $1.7 billion in total payments, which includes an initial payment of $250 million. Additionally, LEO Pharma may earn tiered royalties ranging from high single-digit to mid-teens on oral STAT6 product sales. Conversely, Gilead may receive tiered royalties in the same range on topical STAT6 product sales.
Gilead has noted that this transaction with LEO Pharma is anticipated to reduce its GAAP and non-GAAP earnings per share for 2025 by approximately $0.15 to $0.17.
The material has been provided by InstaForex Company -
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