By Sahil Pandey
Oct 22 (Reuters) – Gilead Sciences said on Thursday it will acquire PepStar Therapeutics’ oral inflammation drug program, including an experimental bowel disease treatment, for $1.275 billion in cash upfront.
The deal follows positive mid-stage results for Gilead’s experimental pill for chronic bowel disease, emvistegrast, on Monday and adds the new inflammatory bowel disease candidate to its portfolio.
Gilead said it sees potential for HCXT-2001 to be developed on its own or in combination with other programs in its pipeline.
Inflammatory bowel disease, or IBD, is a group of long-term conditions in which the immune system causes inflammation in the digestive tract. Gilead said HCXT-2001 is designed to block the IL-23 receptor, part of an immune pathway involved in inflammatory diseases.
Citi analyst Geoffrey Meacham said the $1.275 billion upfront payment was notable given that HCXT-2001 remains in early-stage testing and has no published clinical data.
Meacham said the acquisition reinforces Gilead’s inflammation and immunology strategy while offering an opportunity to diversify its longer-term growth beyond its core HIV business.
Gilead said the deal, expected to close in the final quarter of this year, gives it worldwide rights to the program.
(Reporting by Sahil Pandey in Bengaluru; Editing by Diti Pujara)
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