(Reuters) – Gilead Sciences (NASDAQ:) said on Saturday it has partnered with Denmark's LEO Pharma to develop programs to treat patients with inflammatory diseases.
The Danish company will be able to receive up to $1.7 billion in payments, including an initial payment of $250 million from Gilead.
In exchange, Gilead will have global rights to develop, manufacture and commercialize the oral small molecule STAT6 (signal transducer and activator of transcription 6) program.
Targeting STAT6 has shown preclinical potential to treat a broad population of patients with inflammatory conditions such as atopic dermatitis, asthma and COPD, according to the release.
LEO Pharma may receive tiered 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 to $0.17.
“By partnering with LEO Pharma, we hope to explore the potential of the STAT6 pathway to offer an oral option to patients suffering from chronic inflammatory diseases,” said Flavius Martin, executive vice president of research at Gilead Sciences.
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