what you need to know
Gilead Sciences and Assembly Biosciences have entered into a 12-year partnership to advance the research and development of novel antiviral therapies.
Gilead has the option to obtain exclusive rights to Assembly Bio’s current and future antiviral programs, including preclinical programs targeting HSV and transplant-associated herpesviruses.
Under the terms of the agreement, Gilead will provide $100 million to Assembly Bio, including an upfront payment of $84.8 million and an equity investment of $15.2 million.
This morning, Gilead Sciences and Assembly Biosciences announced that they have entered into a 12-year partnership to advance the research and development of novel antiviral therapies, initially focusing on Assembly Bio’s established herpesvirus (HSV) ), hepatitis B virus (HBV) and hepatitis D virus (HDV).
Assembly is a biotechnology company that produces antiviral therapies. “We are pleased to partner with Gilead to address significant unmet medical needs in herpes viruses, viral hepatitis and more,” Assembly Bio CEO and President Jason Okazaki said in a statement. “With Gilead’s success in antiviral drug development and commercialization and Assembly Bio’s advanced virology research capabilities, we believe the shared expertise and promising investigational therapies that both companies contribute to this collaboration have the potential to provide Significant progress for patients.”
According to the press statement, Gilead may elect to obtain exclusive rights to each of Assembly Bio’s current and future programs, including 2 preclinical programs targeting HSV and transplant-associated herpesviruses that Gilead has licensed to Assembly Bio, subject to a payment option. right. Each project will cost at least $45 million after achieving clinical proof of concept. If Gilead elects to join any current or future programs under the collaboration, Assembly Bio is eligible to receive up to $330 million in funding for each program in potential regulatory and commercial milestones, in addition to funding ranging from the high single digits to the high teens Royalties.
During the collaboration, Assembly Bio will also be eligible to receive three separate $75 million collaboration extension payments at pre-specified points during the collaboration to help fund future research and development.
Under the terms of the agreement, Assembly Bio will receive $100 million, including an upfront payment of $84.8 million and an equity investment of $15.2 million from Gilead. As of the closing date, the company’s premium initial equity investment represented 19.9% of Assembly Bio’s outstanding voting shares. In addition, subject to certain conditions, Gilead has agreed to purchase up to 29.9% of Assembly Bio’s outstanding voting shares at a premium.
“Advancing the next wave of virology innovation remains a core focus for Gilead as we work to address the unmet needs of people affected by severe viral infections around the world,” said Tomas Cihlar, senior vice president of virology research at Gilead.