Gilead to buy PepStar's inflammation drug program in $1.28 billion deal

Oct 22 — 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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