(Reuters) – Gilead Sciences (Nasdaq:) said on Saturday it has partnered with Danish firm Leo Pharma to develop programs to treat patients with inflammatory diseases.
The Danish company will be eligible to receive up to $1.7 billion in payments, including an upfront payment of $250 million from Gilead.
In return, Gilead will receive the global rights to develop, manufacture and commercialize the small molecule oral STAT6 (signal transducer and activator of transcription 6) program.
Targeting STAT6 has shown preclinical potential for treating a wide range of patients with inflammatory conditions such as atopic dermatitis, asthma and chronic obstructive pulmonary disease, the statement said.
LEO Pharma may receive tiered royalties ranging from the high single digits to the mid-teens on sales of topical STAT6 products.
This transaction is expected to reduce Gilead's 2025 GAAP and non-GAAP earnings per share by approximately $0.15-$0.17.
“By partnering with LEO Pharma, we hope to explore the potential of the STAT6 pathway to offer an oral option for patients with chronic inflammatory conditions,” said Flavius Martin, executive vice president of research at Gilead Sciences.
