USA — Gilead Sciences, a prominent biopharmaceutical company, has once again demonstrated its commitment to strategic collaborations and expanding its therapeutic portfolio.
In a recent announcement, Gilead revealed its plan to invest US$35 million in a partnership with Arcus Biosciences to advance research in the field of inflammatory diseases.
This new agreement builds upon a decade-long collaboration between the two companies in the area of oncology, which has already led to the advancement of two Arcus immunotherapies into Phase 3 clinical trials.
Under the terms of the deal, Arcus Biosciences will focus on four targets related to inflammatory diseases, while Gilead will retain the option to license each target at two different time points.
If Gilead exercises its option at the first opportunity, Arcus could potentially receive up to US$420 million in fees and royalties for each of the first two programs.
This agreement reflects Gilead’s commitment to supporting Arcus in its early-stage research endeavors in inflammatory diseases, without placing excessive financial burden on the biotech company.
This recent collaboration comes on the heels of Gilead’s acquisition of XinThera, a privately held company with a pipeline of drugs for inflammatory diseases and cancer.
In the past year, Gilead has also made strategic acquisitions, such as MiroBio in the UK, to bolster its offerings in experimental autoimmune disease drugs and cell therapy development.
While Gilead has established itself as a leader in antiviral treatments, particularly for HIV and hepatitis C, its forays into other disease areas have been met with varying degrees of success.
Therefore, the company has sought partnerships and acquisitions to expand its expertise and therapeutic capabilities in fields like oncology and inflammatory diseases.
The initial collaboration between Gilead and Arcus in 2020 provided Gilead with an entry point into the rapidly evolving field of cancer immunotherapy, focusing on targets such as PD-1 and TIGIT.
With this expanded collaboration, the companies aim to drive early-stage research in inflammatory diseases and achieve closer alignment in their discovery and development activities.
By leveraging each other’s strengths and expertise, Gilead and Arcus seek to advance the understanding of inflammatory diseases and potentially develop innovative treatments.
Specific details about the diseases and biological targets to be explored in this collaboration have not yet been disclosed.
However, Gilead’s acquisition of MiroBio suggests a focus on immune “checkpoints,” which involve modulating immune cell activity to fight cancer in oncology and to regulate immune responses in autoimmune diseases.
Arcus, on the other hand, has developed a PD-1 inhibitor called zimberelimab, which is currently being evaluated in two Phase 3 trials.
These insights provide a glimpse into the potential therapeutic areas that may be explored as part of the expanded partnership.
While the financial impact of this collaboration on Gilead has not been fully disclosed, the company has stated that it expects a reduction of US$0.02 in its per-share earnings for 2023.
With the total value of the deal potentially reaching US$1 billion, it underscores the significance of this partnership and the company’s dedication to advancing research and development efforts in the field of inflammatory diseases.
As Gilead and Arcus embark on this collaborative journey, their shared goal is to make meaningful strides in addressing the unmet medical needs of patients with inflammatory diseases.
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