(Reuters) – Gilead Sciences (NASDAQ: ) announced on Saturday that it has entered into a partnership with Danish company LEO Pharma to develop a program to treat patients with inflammatory diseases.
The Danish company will be entitled to payments of up to $1.7 billion, which includes an upfront payment of $250 million from Gilead.
In return, Gilead will have global rights to develop, manufacture and commercialize an oral STAT6 (signal transducer and activator of transcription 6) small molecule program.
Targeting STAT6 has shown preclinical potential to treat a broad population of patients with inflammatory conditions such as atopic dermatitis, asthma and COPD, the statement said.
LEO Pharma may receive multiple royalties ranging from high single digits to mid-teens for sales of topical STAT6 products.
The 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 present an oral option for patients suffering from chronic inflammatory conditions,” said Flavius Martin, executive vice president of research at Gilead Sciences.
