Gilead Sciences (GILD.US) acquires PepStar’s oral inflammation drug program for $1.275 billion in cash, increasing investment in inflammatory bowel disease pipeline
Gilead Sciences will acquire PepStar’s anti-inflammatory drug program for $1.28 billions.
According to Jinse Finance APP, Gilead Sciences (GILD.US) announced on Thursday that it will acquire PepStar Therapeutics' oral inflammation drug program, including an experimental therapy for intestinal diseases, with a $1.275 billion cash upfront payment. This deal comes after Gilead's experimental oral drug emvistegrast for chronic intestinal disease reported positive mid-stage results on Monday, adding another inflammatory bowel disease (IBD) candidate to its product portfolio. Gilead stated that it believes HCXT-2001 has potential for development as a standalone therapy, or in combination with other projects in its pipeline.
Inflammatory bowel disease is a group of chronic conditions caused by the immune system triggering inflammation in the digestive tract. Gilead said HCXT-2001 is designed to block the IL-23 receptor, which is part of the immune pathway involved in inflammatory diseases.
Citi analyst Geoffrey Meacham noted that, given HCXT-2001 is still in early-stage testing and lacks published clinical data, the $1.275 billion upfront payment is striking.
Meacham said this acquisition strengthens Gilead’s inflammation and immunology strategy while providing an opportunity for its long-term growth beyond its core HIV business.
Gilead stated the deal is expected to close in the final quarter of this year, after which the company will obtain global rights to the program.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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