Gilead Sciences (NASDAQ: GILD) has announced a significant 12-year collaboration with antiviral specialist Assembly Biosciences (NASDAQ: ASMB) aimed at developing innovative therapies targeting herpesviruses, hepatitis B virus (HBV), and hepatitis D virus (HDV). This partnership allows Gilead to acquire Assembly’s promising programs, which include a next-generation core inhibitor for HBV, a long-acting helicase-primase inhibitor for herpes simplex virus (HSV), an orally bioavailable HDV entry inhibitor, and a pan-herpes polymerase inhibitor.
Financial Terms of the Collaboration
As part of the agreement, Gilead will make an upfront payment of USD 84.8 million, alongside an equity investment of USD 15.2 million, which equates to 19.9% of Assembly’s outstanding voting stock. Gilead has the option to increase its stake to 29.9% at a premium. Additionally, the collaboration includes three separate research and development (R&D) investments totaling USD 75 million, with at least USD 45 million allocated for each program upon reaching clinical proof-of-concept. Gilead will also provide up to USD 330 million in milestone payments and will receive sales royalties for any successful therapies developed through this partnership.
Strategic Implications for Gilead
This collaboration underscores Gilead’s commitment to expanding its antiviral portfolio and advancing treatments for viral infections. By leveraging Assembly’s innovative research capabilities, Gilead aims to enhance its competitive position in the antiviral market, particularly in addressing unmet medical needs in herpesvirus and hepatitis infections.-Fineline Info & Tech
