Gilead roars into JPM25, inking $1.7B inflammation deal with Leo Pharma

Gilead Sciences continues its divergence out of its original infectious disease beginnings and into cancer and, now, more deeply than before, into inflammation, penning a major $1.7 billion deal with dermatology specialist Leo Pharma on the eve of the J.P. Morgan Healthcare Conference.

The development and commercialization deal zeros in on Leo’s preclinical STAT6 research programs, according to the Jan. 11 release. The transcription factor is used for IL-4 and IL-13 cytokine signaling, a signal found across multiple inflammatory diseases including eczema, asthma and chronic obstructive pulmonary disease (COPD).

Gilead isn't sharing the specific areas it will hone in on—which is not unusual given how early-stage the deal is—but those three disease areas bring in major blockbuster sales for the likes of AbbVie's Skyrizi and Rinvoq along with Sanofi and Regeneron's Dupixent.

The market potential may be why Gilead is handing over a hefty $250 million upfront pile, with a total $1.7 billion in biobucks (including the upfront payment) on the table for Leo and sales bonuses also on the cards, should anything from the deal get approved down the line.

For its money, Gilead gets hold of Leo’s oral STAT6 small-molecule inhibitors and targeted protein degraders. The Big Pharma will take the lead on the oral programs, while Leo will focus on topical formulations of the STAT6 inhibitors.

Leo currently markets several topical and other dermatology formulations for conditions such as eczema, while also having numerous early- to late-stage pipeline meds aimed at common skin conditions with other Big Pharmas including AstraZeneca and Argenx.

Gilead started life in 1987 as a HIV/AIDS company—an area it still focuses heavily on today—but moved out into hepatitis and, later—with varying success—into cancer. The pharma has penned several inflammation deals in the past, and last year saw the FDA approval of its first-ever inflammatory drug Livdelzi for primary biliary cholangitis.

“As we continue to expand our inflammation portfolio, we're committed to developing next-generation therapies to support long-term remission in patients with inflammatory diseases through mechanisms that block major pathogenic pathways, eliminate pathogenic cells, tolerize the immune system, and restore cell function,” Gilead's executive vice president of research Flavius Martin, M.D., said in the release. “By partnering with LEO Pharma, we hope to explore the potential of the STAT6 pathway to bring forward an oral option for patients suffering from chronic inflammatory conditions.”