On October 17, Gilead Sciences announced that it has established a 12-year partnership with Assembly Biosciences to advance the research and development of novel antiviral therapies, initially focusing on Assembly Bio's established areas of herpes virus, hepatitis B virus (HBV), and hepatitis D virus (HDV).According to the terms of the agreement, Assembly Bio will receive $100 million, including an upfront payment of $84.8 million and a $15.2 million equity investment from Gilead Sciences. As of the closing date, Gilead’s initial premium equity investment represents 19.9% of Assembly Bio's outstanding voting shares. Additionally, subject to certain conditions, Gilead has agreed to purchase up to 29.9% of Assembly Bio’s outstanding voting shares at a premium.
Gilead Sciences has the option to obtain exclusive rights to each of Assembly Biosciences’ current and future programs, including two preclinical programs targeting HSV and transplantation-related herpesviruses, which Gilead is licensing to Assembly Bio. Following proof-of-concept in clinical trials, Gilead will pay a selection fee of at least $45 million per program. If Gilead chooses to participate in any current or future programs under this collaboration, Assembly Bio is eligible to receive up to $330 million per program in potential regulatory and commercial milestones, along with royalties ranging from high single digits to high teens. During the collaboration period, Assembly Bio is also eligible to receive three $75 million collaboration extension payments at predefined time points to help fund future R&D.
Assembly Bio's current portfolio of small molecule antiviral therapies includes clinical and preclinical programs, featuring next-generation core inhibitors ABI-434 for the treatment of HBV, long-acting helicase-priming enzyme inhibitor ABI-5366 for herpes simplex virus (HSV), orally bioavailable HDV entry inhibitor ABI-6250, and a pan-herpes polymerase inhibitor program.Tomas Cihlar, Senior Vice President of Virology Research at Gilead Sciences, stated:"Advancing the next wave of innovation in virology remains a core focus for Gilead Sciences as we work to address unmet needs of people affected by serious viral infections around the world. Collaboration and partnerships are key to pursuing the next wave of transformative innovations. We are pleased to announce our partnership with Assembly Biosciences to synergistically advance and accelerate the discovery and development of novel antiviral therapies."CEO and President of Assembly Biosciences, Inc.Jason Okazaki said:"We are thrilled to partner with Gilead to address significant unmet medical needs such as herpesviruses and viral hepatitis. With Gilead's established success in the development and commercialization of antiviral therapies, combined with Assembly Bio's advanced virology research capabilities, we believe that the shared expertise and promising investigational treatments contributed by both companies through this collaboration hold the potential to deliver meaningful advancements for patients. This partnership will also support Assembly Bio’s goal of becoming a fully integrated biotechnology company, and we are eager to begin working with our new partner."
After Gilead Sciences exercises its option for Assembly Biosciences' projects, Assembly Biosciences will have the right to choose to share profits and costs in the United States. For future new projects, Assembly Biosciences can also opt to co-promote these products in the United States.
Before Gilead Sciences potentially opts in, Assembly Biosciences will primarily be responsible for the R&D work of the collaboration projects, including two Gilead projects. After Gilead opts in, Gilead will take control of the discovery, research, development, and commercialization of the selected projects.
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