FOSTER CITY, Calif & MUNICH - Gilead Sciences, Inc. (NASDAQ:GILD) and biotech firm Tubulis announced an exclusive agreement to develop an antibody-drug conjugate (ADC) aimed at treating solid tumors. The collaboration leverages Tubulis' proprietary drug development platforms and Gilead's expertise in oncology research.
Under the terms of the agreement, Tubulis will receive a $20 million upfront payment and could receive an additional $30 million option exercise fee if Gilead opts to license the ADC program. Potential payments could total up to $415 million, including milestone payments and tiered royalties on sales. With annual revenue of $28.3 billion and strong cash flows, Gilead is well-positioned to fund such strategic investments while maintaining its 10-year track record of consecutive dividend increases.
The partnership focuses on creating a Topoisomerase I inhibitor-based ADC with improved stability and reduced off-target toxicity, addressing current treatment challenges. Tubulis will lead the early-stage research and development, while Gilead has the option to take over further development and commercialization.
The transaction is expected to slightly reduce Gilead's GAAP and non-GAAP EPS for 2024 by approximately $0.01. This collaboration is part of Gilead's strategy to enhance its oncology portfolio, which aligns with Tubulis' goal to transform the ADC landscape.
Gilead Sciences has a history of developing innovative medicines for life-threatening diseases, including HIV, viral hepatitis, COVID-19, and cancer. Tubulis aims to create antibody-drug conjugates with durable anti-tumor activity and is currently evaluating its TUB-040 program in clinical trials for ovarian and non-small cell lung cancer.
This press release contains forward-looking statements subject to risks and uncertainties, including the potential for the collaboration to face difficulties, the progress of clinical trials, regulatory approval processes, and the possibility of discontinuing the investigational programs. All forward-looking statements are based on information currently available to Gilead, and the company does not undertake any obligation to update these statements.
The collaboration between Gilead and Tubulis demonstrates a continued investment in novel technologies to advance cancer treatment options. This information is based on a press release statement.
In other recent news, Gilead Sciences has been making significant strides in its HIV prevention research and financial growth. The company's investigational HIV prevention drug, lenacapavir, demonstrated a 96% reduction in HIV infections in a pivotal Phase 3 trial. This promising data supports global regulatory filings for lenacapavir, expected to commence by the end of 2024.
In financial developments, Gilead issued $3.5 billion in senior notes intended for general corporate purposes, including repaying existing debt. Analysts from RBC Capital Markets and Citi have shown confidence in Gilead, maintaining a Sector Perform rating and assigning a Buy rating respectively.
Gilead also reported encouraging interim results from its Phase 3 ASSURE study on Livdelzi, a treatment for primary biliary cholangitis. The study revealed that 81% of patients achieved a composite biochemical response, with 41% reaching normal alkaline phosphatase levels.
Furthermore, Gilead announced its earnings results for the third quarter of 2024. The details were not disclosed, but the company's leadership participated in a Q&A session following the announcement. These recent developments highlight Gilead's ongoing commitment to HIV treatment and prevention, as well as its potential for growth and profitability.
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