Gilead and Arcus Expand Oncology Collaboration into Inflammatory Diseases After Three Years

　　【Pharmaceutical Network Industry Dynamics] May 15 news: Gilead Sciences and Arcus Biosciences simultaneously announced that both parties have decided to expand their previously reached oncology research collaboration to the field of inflammation.
 

The agreement shows that Arcus will receive a $35 million upfront payment and initiate research programs targeting up to four inflammatory disease-related targets jointly selected by both parties.
 

Gilead Sciences can exercise the option to introduce each project at two independent, pre-specified time points. If Gilead exercises the option for the first two target projects at the earlier time point, Arcus Biosciences will be eligible to receive up to $420 million in option and milestone payments, as well as tiered royalties for each selected project.
 

Both parties will have the right to jointly develop and share global development costs, and co-commercialize and share profits from selected projects in the United States.
 

Previously, the collaboration between the two parties in the field of oncology research took place in May 2020, when Gilead Sciences and Arcus Biosciences entered into a 10-year partnership. Gilead obtained direct rights to zimberelimab as well as opt-in rights to all other Arcus clinical products, including AB154, AB928, and AB680.
 

Arcus will receive $375 million, including a $175 million upfront payment and a $200 million equity investment from Gilead Sciences. It is also eligible to receive up to $1.225 billion in opt-in and milestone payments for its current clinical candidate products.
 

If Gilead exercises its option, the two companies will jointly develop and share global development costs, and will co-commercialize in the United States, sharing profits.
 

Data shows that Arcus Biosciences, founded in 2015, is committed to the development of BIC molecules and combination therapies in the field of cancer. Its main project involves various clinical studies on the combination of TIGIT monoclonal antibody (domvanalimab) and PD1 monoclonal antibody (zimberelimab).
 

From the public information, Gilead Sciences has frequently expanded its presence in the fields of oncology and inflammation. Since 2017, Gilead has conducted extensive acquisitions in the anti-tumor sector, including the $11.9 billion acquisition of Kite Pharma to incorporate the latter’s CAR-T therapy pipeline; the $21 billion acquisition of Immunomedics to obtain the First-in-class TROP2 ADC drug Trodelvy; and the $405 million acquisition of MiroBio in 2022 to gain access to immune checkpoint agonist drugs. Recently, the company announced the acquisition of all outstanding shares of XinThera, a company primarily focused on immunological inflammation and precision oncology. Through this acquisition, Gilead obtained small molecule inhibitors for the treatment of cancer and inflammatory diseases, which may enter clinical trials later this year. These drugs have the potential to address multiple indications, either as standalone treatments or in combination with Gilead's products, offering broad development opportunities.
 

Gilead's 2022 financial report shows that the total annual revenue reached 23.1 billion U.S. dollars, representing an 8% year-over-year increase. Among this, the sales of the two CAR-T products, Yescarta® and Tecartus®, both achieved significant growth. The total sales for 2022 amounted to 1.459 billion U.S. dollars, marking a 67.5% increase compared to the 2021 sales of 871 million U.S. dollars. Specifically, Yescarta®'s sales in Q4 2022 grew to 337 million U.S. dollars, while Tecartus®'s sales in Q4 2022 increased to 82 million U.S. dollars.
 

According to the earnings report for the first quarter of 2023, Gilead Sciences' total revenue decreased by 4% compared to the same period in 2022 due to a significant decline in sales of Veklury (Remdesivir); excluding Veklury, Gilead’s total product sales in Q1 2023 increased by 15% to $5.7 billion, primarily driven by growth in sales of HIV, cell therapy, Trodelvy, and liver disease-related products.
 

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